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Some of the outflows included operating expenses and accounts payable. Cash inflows come from collections on accounts receivables. Cash outflows are condensed into four categories: payments on accounts payable, operating expenses, capital expenditures, taxes, interest, and dividend payments (Brealey, Myers, & Allen, 2005)
Terms of Sale In the working capitol management simulation, Lawrence has terms of sale set up with its business partners to pay a certain percentage at the time of the sale and pay the rest the following week. Terms of sale are the individual practices that a firm has for transactions that involve credit...
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