Accounts receivable and inventory turnover rates

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Reference no: EM131359817

The accounts receivable and inventory turnover rates remain the same. However a company negotiates with its major supplier of inventory to allow an extra 15 days in which to pay with no finance charge and with no loss of price discount.

a. The company will realize a more efficient cash conversion.

b. The company will experience no change in an efficient cash conversion.

c. The company will have to wait an extra 15 days to collect on its accounts receivable.

d. The company will have to wait more than 15 days to collect on its accounts receivable.

Reference no: EM131359817

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