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.
Verified Answer
Learning Objectives
- Interpret the impact of changes in current assets and liabilities on cash flows.
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