Briefly explain the impact on a company’s C2C cycle if they experienced: An increase in accounts payable turnover

Briefly explain the impact on a company’s C2C cycle if they experienced:

An increase in accounts payable turnover

An increase weeks payable

An increase in weeks receivable

An increase in weeks in inventory

Solutions

Expert Solution

(A) Increase in Weeks payable

Explanation:

If increasing Weeks which is payable to creditors then the cash to cash cycle will be improved.

Cash-to-cash cycle time (also known as cash-conversion cycle or order-to-pay cycle) measures the days between (1) the purchase of materials/inventory from a supplier and (2) payment collection for sale of the resulting product(s).

The option (A) is right option.

Nabeel answered 1 year ago

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