Most likely to result in positive cash flow to creditors

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Reference no: EM131933867

1. All else equal, a firm that purchases raw materials on credit will experience:

a. a decrease in trade credit with a given increase in purchases

b. no change in trade credit with a given increase in purchases.

c. an increase in trade credit with a given increases in puchases.

d. no change in trade credit with a given decrease in purchases.

e. an increase in trade credit with a given decrease in purchases.

2. Which of the following is the most likely to result in a positive cash flow to creditors?

a. Borrowing more money b. issuing shares of stock c. Purchasing fixed assets with cash. d. Paying off existing debt e. investing for the future

Reference no: EM131933867

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