IMpact of cash flows and ratios
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Post Corporation purchases from suppliers on net 30 day terms, has an Accounts Receivable Turnover of 8 times, and an Inventory Turnover of 12 times. Cash inflows and outflows are
a. evenly matched.
b. negatively mismatched by 60 days.
d. negatively mismatched by 45 days.
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Solution Summary
The impacts of cash flows and ratios are discussed. The negatively mismatched corporations are analyzed.
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