🔥 Daily ChallengeISESecurities analysis and investment theoryMedium
An investment dealer's corporate finance team is evaluating a retail firm for a potential debt underwriting. They use the indirect method to review the firm's Operating Activities. They note that while Net Income is flat, Operating Cash Flow has surged because Accounts Payable increased significantly. Which of the following best explains why the increase in Accounts Payable improves the firm's operating cash flow?