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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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