320 dbr4 - effect the company as a whole The existence of...

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Solange Companies have some diplomacy on how long they take to pay their vendors. When a company is exceedingly stretching the payments to its vendors can lead to a large benefit to the operating cash flow. I agree that if a company decides to stretch the payments, short debts is more feasible than long term debts. But even by manipulating short term debts can be dangerous. If payment plans have already been offered I think it is best to stay with that because if calculations are not done correctly like you stated this could
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Unformatted text preview: effect the company as a whole. The existence of cash flow manipulation techniques such as stretching payables during a reporting period can reduce the quality of the overall reporting of operating cash flow. “Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law.” (Romans 13:8)...
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This note was uploaded on 04/03/2011 for the course ECON 490 taught by Professor Professorjohns during the Spring '09 term at Liberty.

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