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[solution]: 4. Changes in Cycles Indicate the impact of the following on the cash and op- erating cycles,...


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4.        Changes in Cycles   Indicate the impact of the following on the cash and op- erating cycles, respectively. Use the letter I to indicate an increase, the letter D for a decrease, and the letter N for no change: a.   The terms of cash discounts offered to customers are made less favorable. b.   The cash discounts offered by suppliers are decreased; thus, payments are made earlier. c.    An increased number of customers begin to pay in cash instead of with credit. d.   Fewer raw materials than usual are purchased. e.    A greater percentage of raw material purchases are paid for with credit. f.    More finished goods are produced for inventory instead of for order.  

 


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