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HPH, Inc. has annual CGS of $365,000. Which of the following is most likely to occur if HPH increases its DPO from 30 days to

HPH, Inc. has annual CGS of $365,000. Which of the following is most likely to occur if HPH increases its DPO from 30 days to 40 days?

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Payables will decrease and liquidity will increase

Operating cash flow will increase as payables rise

Operating cash flow will drop as payables decrease

Profitability will weaken as interest expense increases

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