Aspartofitsworkingcapitalmanagementprogram,RotanCorporationhasanaccountspayablefinancingarrangementwiththeFirstNationalBank.ThebankpaysRotan'svendorswithin30daysoftheinvoicedate.Rotanreimbursesthebank90daysaftertheinvoiceisdue.Ignoringinterest,whatisthe<strong><em>mostlikely</em></strong>effectonRotan'soperatingcashflowandfinancingcashflowwhenthebankisrepaid? A: Bothwilldecrease. B: Neitherwilldecrease. C: Onlyonewilldecrease.
Aspartofitsworkingcapitalmanagementprogram,RotanCorporationhasanaccountspayablefinancingarrangementwiththeFirstNationalBank.ThebankpaysRotan'svendorswithin30daysoftheinvoicedate.Rotanreimbursesthebank90daysaftertheinvoiceisdue.Ignoringinterest,whatisthe<strong><em>mostlikely</em></strong>effectonRotan'soperatingcashflowandfinancingcashflowwhenthebankisrepaid? A: Bothwilldecrease. B: Neitherwilldecrease. C: Onlyonewilldecrease.
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