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ESSENTIAL OF CORP FINANCE W/CONNECT
8th Edition
ISBN: 9781259903175
Author: Ross
Publisher: MCG CUSTOM
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Question
Chapter 16, Problem 16.1C
Summary Introduction
To discuss: Whether decrease in accounts payable will decrease cash.
Introduction:
Any payment of cash made by the company to its creditors are termed as accounts payable
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Explanation of Solution
Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.
Conclusion
Thus, decrease in accounts payable will ultimately affects the cash flow of the company.
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Chapter 16 Solutions
ESSENTIAL OF CORP FINANCE W/CONNECT
Ch. 16.1 - What is the difference between net working capital...Ch. 16.1 - Prob. 16.1BCQCh. 16.1 - Prob. 16.1CCQCh. 16.1 - List five potential sources of cash.Ch. 16.2 - What does it mean to say that a firm has an...Ch. 16.2 - Prob. 16.2BCQCh. 16.2 - Prob. 16.2CCQCh. 16.3 - Prob. 16.3ACQCh. 16.3 - Prob. 16.3BCQCh. 16.4 - Prob. 16.4ACQ
Ch. 16.4 - Prob. 16.4BCQCh. 16.5 - What are the two basic forms of short-term...Ch. 16.5 - Prob. 16.5BCQCh. 16.6 - Prob. 16.6ACQCh. 16.6 - Prob. 16.6BCQCh. 16 - Prob. 16.1CCh. 16 - Prob. 16.2CCh. 16 - Prob. 16.3CCh. 16 - Prob. 16.5CCh. 16 - Prob. 16.6CCh. 16 - Operating Cycle. What are some of the...Ch. 16 - Prob. 2CTCRCh. 16 - Prob. 3CTCRCh. 16 - Cost of Current Assets. Kane Manufacturing. Inc.,...Ch. 16 - Prob. 5CTCRCh. 16 - Prob. 6CTCRCh. 16 - Prob. 7CTCRCh. 16 - Use the following information to answer Questions...Ch. 16 - Prob. 9CTCRCh. 16 - Prob. 10CTCRCh. 16 - Prob. 1QPCh. 16 - Prob. 2QPCh. 16 - Changes in the Operating Cycle. Indicate the...Ch. 16 - Prob. 4QPCh. 16 - Prob. 5QPCh. 16 - Prob. 6QPCh. 16 - Prob. 7QPCh. 16 - Prob. 8QPCh. 16 - Prob. 9QPCh. 16 - Prob. 10QPCh. 16 - Prob. 11QPCh. 16 - Prob. 12QPCh. 16 - Prob. 13QPCh. 16 - Prob. 14QPCh. 16 - Prob. 15QPCh. 16 - Prob. 16QPCh. 16 - Prob. 17QPCh. 16 - Prob. 18QPCh. 16 - Prob. 1CC
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Similar questions
- What are some possible negative signals when the product of the accounts receivable turnover ratio is lower (i.e., fewer times)?arrow_forwardA. What is the incremental cash flows from switching credit policies? B. What is the cost of switching? C. What is your recommendation? D. What is the break-even sales increase? Interpret.arrow_forwardWhat is the difference between cash receipts and cash payments?arrow_forward
- A change in money demand or a shift in the money demand curve is caused by a change in * the interest rate. non-interest determinants. cost of borrowing. all of the abovearrow_forwardAn increase in the Credit Creation Multiplier will result in an/a: O a. None of the above b. Decrease in Money Supply O C. Increase in Money Supply d. No Change in Money Supplyarrow_forwardWhat happens to cash if the value of other current assets rises? Is it possible that current assets, other from cash, may decrease?arrow_forward
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