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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? Select one:

a. Payables will decrease and liquidity will increase

b. Operating cash flow will increase as payables rise

c. Operating cash flow will drop as payables decrease

d. Profitability will weaken as interest expense increases

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