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Impact on cash flow of accounts receivable and payable

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How can a credit manager use accounts receivable to improve cash flow?

How can a financial manager use accounts payable to positively impact cash flow?

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Solution Summary

The solution explains the impact on cash flows of accounts receivable and accounts payable.

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1. Accounts Receivable (AR) - Accounts Receivable arise, when the goods are sold on credit. Till you realize the cash from the customers, you do not have access to that cash. In order to improve cash flow, you can
(a) Shorten the credit period - This would mean that ...

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