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Basic Question 6 of 6
In a working capital forecast, what does a significant increase in accounts payable imply?
B. The company is experiencing rapid sales growth.
C. The company is reducing its short-term debt.
D. The company's inventory turnover is improving.
A. The company is facing a cash flow problem and may struggle to pay its suppliers.
B. The company is experiencing rapid sales growth.
C. The company is reducing its short-term debt.
D. The company's inventory turnover is improving.
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Learning Outcome Statements
explain approaches to forecasting a company's operating expenses and working capital
CFA® 2025 Level I Curriculum, Volume 3, Module 7.