Complete Questions 16.3-16.10 in your own words and in-detailed explanation! DON'T MISS A SINGLE QUESTION! LO3 16.3LO2 16.4LO1 16.5Use the following information to answer Questions 16.6-16.10. Last month, BlueSky Airline announced that it would stretch out its billpayments to 45 days from 30 days. The reason given was that the company wanted to "control costs and optimize cash flow." The increasedpayables period will be in effect for all of the company's 4,000 suppliers.Page 551LO1 16.6What impact did this change in payables policy have on BlueSky's operating cycle?LO1 16.7LO1 16.8Sources and Uses For the year just ended, you have gathered the following information on the Holly Corporation:a. A $200 dividend was paid.b. Accounts payable increased by $500.c. Fixed asset purchases were $900.d. Inventories increased by $625.e. Long-term debt decreased by $1,200.Label each item as a source or use of cash and describe its effect on the firm's cash balance.Cost of Current Assets Kane Manufacturing, Inc., has recently installed a just-in-time (JIT) inventory system. Describe theeffect this is likely to have on the company's carrying costs, shortage costs, and operating cycle.Cycles Is it possible for a firm's cash cycle to be longer than its operating cycle? Explain why or why not.LO1 16.9LO1 16.10Operating and Cash CyclesIts cash cycle?Operating and Cash CyclesWhat impact did the announcement have on BlueSky's suppliers?Corporate Ethics Is it ethical for large firms to unilaterally lengthen their payables periods, particularly whendealing with smaller suppliers?Payables Period Why don't all firms increase their payables periods to shorten their cash cycles?Payables Period BlueSky lengthened its payables period to "control costs and optimize cash flow." Exactly whatis the cash benefit to BlueSky from this change?

Sources and Uses of Cash To comprehend how cash moves within a corporation, it is essential to know…

Answered: Complete Questions 16.3-16.10 in your…

Business

Accounting

Complete Questions 16.3-16.10 in your own words and in-detailed explanation! DON'T MISS A SINGLE QUESTION!

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 12PROB

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