4. Changes in Cycles [LO1] Indicate the impact of the following on the cash and operating 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 fi nished goods are produced for inventory instead of for order.
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4. Changes in Cycles [LO1] Indicate the impact of the following on the cash and operating cycles, re...
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