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Would the move to a JIT system have a one-time or recurring impact on operating cash flow?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter11: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 3MC

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In computing the periods net operating cash flows, why are increases in current liabilities and decreases in current assets added back to net income?
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