Negative operating cash flows are often attributable to increasing receivables and inventories.

Name: Negative operating cash flows are often attributable to increasing receivables and inventories.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Increasing accounts receivables and inventories often require a company to spend more cash upfront, leading to negative operating cash flows. This can occur if the company is not collecting payments from customers in a timely manner or is purchasing more inventory than it is able to sell.

Negative Operating Cash Flows Are Often Attributable to Increasing Receivables