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ABC Ltd managed to increase the number of days payable outstanding from DPO0 = 30 days to DPO1 = 40 days. If the Cost of

ABC Ltd managed to increase the number of days payable outstanding from DPO0 = 30 days to DPO1 = 40 days. If the Cost of Goods Sold remain unchanged (COGS0=COGS1= $500).

What will be the impact of this increase in DPO in the Year1 Cash Flow?

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