1. All else the same, which of the following would decrease the length of a firm's cash cycle? Consider each in isolation of one another.
a. Inventory period decreases
b. Accounts receivable period increases
c. Accounts payable period decreases
d. Operating cycle increases
e. None of the above cash budget
2. The manager of a seasonal products firm excess cash keeps holiday season, to take advantage of retailers looking to sell excess inventory at below cost. The manager is holding cash for..........
A. speculative motives.
B. transaction motives.
C. precautionary motives.
D. opportunity costs.
E. short time financing.