Asked by Lauren Stacy on Apr 25, 2024
Verified
Which of the following would result in an improvement in the C2C cycle for Katz if all other entries in their selected financial data were held constant?
A) An increase in accounts payable turnover
B) An increase weeks payable
C) An increase in weeks receivable
D) An increase in weeks in inventory
C2C Cycle
The cycle within consumer-to-consumer transactions, from one individual to another, typically facilitated by third-party platforms.
Accounts Payable
The amount of money a company owes to its suppliers or creditors for goods and services purchased on credit.
- Evaluate the financial consequences of decisions made within the supply chain, highlighting their effect on key indicators such as cash-to-cash cycle time, ROE, and accounts receivable turnover rates.
Verified Answer
GC
Galilee CastilloApr 30, 2024
Final Answer :
B
Explanation :
An increase in weeks payable would result in an improvement in the Cash-to-Cash (C2C) cycle for Katz because it means the company is taking longer to pay its suppliers, thereby retaining cash longer and improving its cash flow.
Learning Objectives
- Evaluate the financial consequences of decisions made within the supply chain, highlighting their effect on key indicators such as cash-to-cash cycle time, ROE, and accounts receivable turnover rates.
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