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What does the cash operating cycle, days in payables - (days in sales + days in inventory) tell analysts about a company? Firms that pay
What does the cash operating cycle, days in payables - (days in sales + days in inventory) tell analysts about a company? Firms that pay their suppliers prior to collecting from customers turn their inventory quicker. Firms that pay their suppliers prior to collecting from customers receive better credit terms from their suppliers All of the above Firms that pay their suppliers prior to collecting from customers have less stringent credit terms for their customers Firms that pay their suppliers prior to collecting from customers are less efficient in their operations and must finance their operating capital
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