While a firms sales and net income have been steady during the last three years, the firm has experienced a decrease in its accounts receivable and inventory turnovers and an increase in its accounts payable turnover What is the likely direction of change in cash flow from operations How would your...

The steady sales and net income should result in relatively constant addbacks for depreciation de ...

While a firms sales and net income have been steady during the last three years, the firm

Question:

While a firm’s sales and net income have been steady during the last three years, the firm has experienced a decrease in its and inventory turnovers and an increase in its turnover. What is the likely direction of change in cash flow from operations? How would your answer be different if sales and net income were increasing?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...