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As part of its working capital management program, Rotan Corporation has an accounts payable financing arrangement with First National Bank. The bank pays Rotan's vendors

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As part of its working capital management program, Rotan Corporation has an accounts payable financing arrangement with First National Bank. The bank pays Rotan's vendors within 30 days of the invoice date, Rotan reimburses the bank 90 days after the invoice is due. Ignoring interest, what is the most likely effect on Rotan's operating cash flow and financing cash flow when the bank is repaid? Only one will decrease. Both will decrease Neither will decrease

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