Question: Consider KaseyKraft Company from Example 22.15 in the text. As discussed in the text, its operating cash flow (OCF) for the year is $ 248,610.
Consider KaseyKraft Company from Example 22.15 in the text. As discussed in the text, its operating cash flow (OCF) for the year is $ 248,610. Because this is much lower than operating income of $ 733,077, KaseyKraft would like to report a higher OCF figure. What decisions could KaseyKraft make to increase its OCF?
How much would KaseyKraftâs operating cash flows increase if it factored one-half of its receivables, reduced its inventory by one- third, and postponed its payment to vendors such that they did not pay off an additional $ 50,000 of accounts payable?
How much would KaseyKraftâs operating cash flows increase if it factored one-half of its receivables, reduced its inventory by one- third, and postponed its payment to vendors such that they did not pay off an additional $ 50,000 of accounts payable?
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