Reasons for Net Working Capital In an ideal economy, net working capital is always zero. Why might

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Reasons for Net Working Capital In an ideal economy, net working capital is always zero.

Why might net working capital be positive in a real economy?

Use the following information to answer Questions 8–12: Last month, BlueSky Airline announced that it would stretch out its bill payments to 45 days from 30 days. The reason given was that the company wanted to “control costs and optimize cash fl ow.” The increased payable period will be in effect for all of the company’s 4,000 suppliers. LO.1

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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