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IMpact of cash flows and ratios

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.

Solution Summary

Classic problem!