Asked by Ashley Mayorga-Lara on May 11, 2024

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Free cash flow will increase if a company increases its accounts payable balance by delaying payments to suppliers.

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures, indicating the ability to repay creditors or pay dividends and interest to investors.

Accounts Payable Balance

The total amount of money owed by a company to suppliers for goods and services purchased on credit.

Payments To Suppliers

Money transferred to suppliers for goods or services received.

  • Interpret the impact of changes in current assets and liabilities on cash flows.
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Aimun ShakilMay 16, 2024
Final Answer :
True
Explanation :
By delaying payments to suppliers, the cash that would have been used to pay them can be used to invest in other parts of the business or kept on hand, increasing the company's free cash flow.