Ask Question
BusinessBusiness
23 December, 16:40

Peterson's Antiquities currently has a 31 day cash cycle. Assume the firm changes its operations such that it decreases its receivables period by 2 days, decreases its inventory period by 3 days, and decreases its payables period by 4 days. What will the length of the cash cycle be after these changes?

+4
Answers (1)
  1. 23 December, 18:34
    0
    Answer: 30 days

    Explanation: Cash cycle refers to the amount of time it takes for a business from paying cash to its suppliers for raw materials and receiving cash from its customers fro the sales made.

    Hence from the above we can say that : -

    decrease in inventory will decrease the cycle.

    Decrease in receivables will decrease the cycle.

    decrease in payables will increase the cycle.

    Thus,

    cash cycle = 31 days - 2 days + 4 days - 3 days

    = 30 days
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Peterson's Antiquities currently has a 31 day cash cycle. Assume the firm changes its operations such that it decreases its receivables ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A project that provides annual cash flows of $24,000 for 9 years costs $110,000 today. Under the IRR decision rule, is this a good project if the required return is 8 percent?
Answers (1)
Which career is likely to earn highest salary
Answers (1)
You've decided to buy a new computer that costs $1,500. But Best Buy will let you take the computer home without making paying the full price immediately. Rather, Best Buy will let you pay $500 now, and $500 at the end of each of the next two years.
Answers (1)
When policymakers set prices by legal decree, they obscure the signals that normally guide the allocation of society's resources?
Answers (1)
Craigmont company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. its conversion costs total:
Answers (1)
New Questions in Business
Which of the following could be an ideal randomized controlled experiment to study the desired causal effect? A. Allow all students an extra day to study for the microeconomics exam.
Answers (1)
Does A Zebra Think Its Black On White or White On Black?
Answers (1)
Effective vision statements include a. financial objectives and projected figures. b. all strategic directions of the organization. c. strategic posturing and future objectives. d. a brief statement of the company's direction.
Answers (1)
True or false: people in business get ahead by meeting the needs of their consumers. as a result, both businesses and customers benefit from voluntary exchange.
Answers (1)
Jim and kathy have a contract with a term that is not clear. kathy and jim both have a different interpretation of the contract. if kathy wrote the contract, a court will
Answers (1)
Home » Business » Peterson's Antiquities currently has a 31 day cash cycle. Assume the firm changes its operations such that it decreases its receivables period by 2 days, decreases its inventory period by 3 days, and decreases its payables period by 4 days.
Sign Up Forgot Password?