Answer: a. Amount change in assets-increase in retained earnings-increase in payables $60 million-$30 million-$45 million =-$15 million b. The company can take some of the retained earnings and pay it out as dividend,or it could use it to reduce any of the payables,short-term debt,or long-term debt. 7.The Wright Way Inc.has an inventory period of 61 days,a receivables period of 67 days and a payables period of 45 days.Compute the cash cycle time. Answer: Cash cycle time Inventory period Receivables period-Payables period =61+67-45 =83 days 3-93-9 Answer: a. Amount = change in assets – increase in retained earnings – increase in payables = $60 million - $30 million - $45 million = - $15 million b. The company can take some of the retained earnings and pay it out as dividend, or it could use it to reduce any of the payables, short-term debt, or long-term debt. 7. The Wright Way Inc. has an inventory period of 61 days, a receivables period of 67 days and a payables period of 45 days. Compute the cash cycle time. Answer: Cash cycle time = Inventory period + Receivables period – Payables period = 61 + 67 - 45 = 83 days