Clayton Systems is a company that provides business-to-business products and services, generating over $3 billion in annual revenues. The following question pertains to Clayton Systems Financial Statements from fiscal years 2012 and 2013. In fiscal year 2013, Clayton had over $213 million of accounts receivable and $244 million in accounts payable on its balance sheet. In fiscal year 2014, if Clayton were to change its customers' terms of payments from Net 90 to Net 30, which of the following would be the most likely outcome on the balance sheet? OA) Accounts receivable would decrease OB) Accounts receivable would increase OC) Accounts payable would decrease OD) Accounts payable would increase

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Clayton Systems is a company that provides business-to-business products and services, generating over $3 billion in annual
revenues. The following question pertains to Clayton Systems Financial Statements from fiscal years 2012 and 2013. In fiscal year
2013, Clayton had over $213 million of accounts receivable and $244 million in accounts payable on its balance sheet. In fiscal year
2014, if Clayton were to change its customers' terms of payments from Net 90 to Net 30, which of the following would be the most
likely outcome on the balance sheet?
OA) Accounts receivable would decrease
OB) Accounts receivable would increase
OC) Accounts payable would decrease
OD) Accounts payable would increase
Transcribed Image Text:Clayton Systems is a company that provides business-to-business products and services, generating over $3 billion in annual revenues. The following question pertains to Clayton Systems Financial Statements from fiscal years 2012 and 2013. In fiscal year 2013, Clayton had over $213 million of accounts receivable and $244 million in accounts payable on its balance sheet. In fiscal year 2014, if Clayton were to change its customers' terms of payments from Net 90 to Net 30, which of the following would be the most likely outcome on the balance sheet? OA) Accounts receivable would decrease OB) Accounts receivable would increase OC) Accounts payable would decrease OD) Accounts payable would increase
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