Changes affected the accounts payable period

Assignment Help Financial Management

Reference no: EM13946872

The Fried Green Tomatoes Restaurant increased its operating cycle from 140 days to 148 days while the cash cycle decreased by 3 days. How have these changes affected the accounts payable period?

Increased by 5 day

Decreased by 5 days

Decreased by 1 day

Decreased by 11 days

Increased by 11 days

Reference no: EM13946872

Questions Cloud

What is the value of each companys equity : Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. Each company expects to earn $28.0 million before interest per year in perpetuity, with each company distributing all its earnings as dividends. What is t..

Inheritance in guaranteed interest account that pays : Sid just deposited his $3 million inheritance in a guaranteed interest account that pays 5.4%, compounded monthly. What is the maximum size, equal monthly withdrawal Sid can make from the account over the next 30 years?

What is the equivalent annual cost : A machine costs $60,000 and requires $5,000 maintenance for each year of its three-year life. The maintenance costs are paid at the end of each year. After three years, the machine will be replaced. Assume a tax rate of 34% and a discount rate of 14 ..

Interest rate on the loan with the compensating balance : Suppose your firm is seeking a five-year, amortizing $900,000 loan with annual payments and your bank is offering you the choice between a $950,000 loan with a $50,000 compensating balance and a $900,000 loan without a compensating balance. If the in..

Changes affected the accounts payable period : The Fried Green Tomatoes Restaurant increased its operating cycle from 140 days to 148 days while the cash cycle decreased by 3 days. How have these changes affected the accounts payable period?

Important factor to consider when seeking venture capitalist : Which of the following are important factors to consider when seeking a venture capitalist?

What is the firms pretax cost of debt : Birds of a Feather has 10-year bonds outstanding that carry an annual coupon of 8 percent. The bonds mature in 7 years and are currently priced at 110 percent of face value. What is the firm's pretax cost of debt?

The average return and standard deviation : "Rank the following three stocks by their risk return relationship, worst to best. Rail Haul has an average return of 12 percent and standard deviation of 25 percent. The average return and standard deviation of Idol Staff are 15 percent and 35 perce..

What face value of life insurance is needed : Anna and mike are considering their life insurance options. They both make about 50,000/year. In the event that something happens to one of them, they figure they will need to cover the other persons salary at 80% for 10 years. what face value of lif..

User Account

All Pages