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This post addresses lengthening the payable period.

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Discuss ethical issues related to lengthening the payable period when dealing with small suppliers. (Hint: Think Walmart)

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The solution provides a detailed discussion examining the ethical issues related to lengthening the payable period when dealing with small suppliers.

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It is not ethical when large companies lengthen the payables period when dealing with small suppliers. Many large companies need to keep liquidity at a certain level, and try to keep their liquidity high towards the end of the accounting period. By doing so, their balance sheet will look strong. Many bigger companies do this by taking advantage of smaller suppliers. By lengthening the payable period, they're pushing the payments to the ...

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