Question: While sales and net income have been steady during the last three years, a firm has experienced a decrease in its accounts receivable and inventory

While sales and net income have been steady during the last three years, a 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 answer be different if sales and net income were increasing?

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