As part of its working capital management program, Rotan Corporation has an accounts payable financing arrangement with the First National Bank. The bank pays Rotan's vendors within 30 days of the invoice date. Rotan reimburses the bank 90 days after the invoice is due. Ignoring interest, what is the most likely effect on Rotan's operating cash flow and financing cash flow when the bank is repaid?
A.Both will decrease.
B.Neither will decrease.
C.Only one will decrease.
参考答案与解析：
-
相关试题
-
If RGB, Inc. has annual sales of $100,000, average accounts payable of $30,000, and average accounts
-
[单选题]If RGB, Inc. has annual sales of $100,000, average accounts payable of $30,
- 查看答案
-
Which of the following changes in a firm's working capital management is most likely to result
-
[单选题]Which of the following changes in a firm's working capital management is mo
- 查看答案
-
A lessee company named YYK corporation entered into a new capital lease agreement with its partner.
-
[单选题]A lessee company named YYK corporation entered into a new capital lease agr
- 查看答案
-
Accounts receivable and accounts payable are most likely classified as which financial statement ele
-
[单选题]Accounts receivable and accounts payable are most likely classified as whic
- 查看答案
-
SF Corporation has created employee goodwill by reorganizing its retirement benefit package. An inde
-
[单选题]SF Corporation has created employee goodwill by reorganizing its retirement
- 查看答案
-
Decreasing accounts payable turnover by delaying payments to suppliers is most likely to cause cash
-
[单选题]Decreasing accounts payable turnover by delaying payments to suppliers is m
- 查看答案
-
2 An important part of management is und
-
[试题]2 An important part of management is understanding the style. of leadership.Required:(a) Explain what Blake and Mouton’s Managerial Grid measures. (5 marks)
- 查看答案
-
On 1 January, a company, which prepares its financial statements according to IFRS, arranged financi
-
[单选题]On 1 January, a company, which prepares its financial statements according
- 查看答案
-
A firm is said to have a top-heavy capital structure if a high percentage of its total capital is:
-
[单选题]A firm is said to have a top-heavy capital structure if a high percentage o
- 查看答案
-
Other factors held constant, the reduction of a company's average accounts payable because of s
-
[单选题]Other factors held constant, the reduction of a company's average accounts
- 查看答案
