Answer Happy

Greenhouse plc has a quick (liquidity) ratio(receivables plus cash divided by payables) equal to two. Thedirectors believe that the cash balance is too low and have decidedto extend the company's payment terms to suppliers from one monthto two months.
What would be the effect (if any) on the company's cashoperating cycle and quick (liquidity) ratio?
Operating cycle will
A.increase
B. decrease
C. not change
Quick (liquidity) ratio will
D. increase
E. decrease
F. not change