The inventory turnover for the Sneeky Company is 8 times and its day's sales outstanding is 55. The average payables deferral period (or turnover) is 7.5. What is the cash cycle for Sneeky given a 365-day year.
A firm currently has a 36 day cash cycle. Assume that the firm changes its operations such that it decreases its receivables period by 4 days, increases its inventory period by 1 day and decreases its payables period by 2 days. What will the length of the cash cycle be after these changes?