Of the 4 Strategies Described Below,which One Is Most Likely

question 15

Multiple Choice

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

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