Which one of the following sentences is correct about a manufacturing firm with seasonal sales?
A) The cash flows for the fixed expenses tend to remain relatively stable from one quarter to the next.
B) Purchases of raw materials are normally paid for at the time of purchase.
C) The primary suppliers to the firm are normally paid 30 days prior to supplying their goods to the firm.
D) Capital expenditures tend to be relatively constant throughout the course of a year.
E) The total cash disbursements tend to be relatively constant each quarter even though the cash collections vary considerably.
Correct Answer:
Verified
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