Of the 4 strategies described below,which one is most likely to lead to the highest increase of the ratio of cash flow from operations to income from operations?
A) Reduce credit terms to customers,increase inventory levels,increase payables
B) Increase credit terms to customers,increase inventory turnover,negotiate longer credit terms with suppliers
C) Reduce credit terms to customers,keep inventory level steady,increase payables
D) Increase sales revenue by extending longer credit terms to customers,reduce inventory levels,and reduce payables faster than inventories are reduced
Correct Answer:
Verified
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