2014CFA1级-每日一练-财务分析-008 against, financing, accounts, customers, finance

John10

Charger Corporation offers extended payment terms to its customers. In order to finance its accounts receivable, Charger is considering two alternatives. The first alternative is to borrow against the receivables. The second alternative is to securitize the receivables through a special purpose entity. Which alternative would result in lower operating cash flow and lower financing cash flow?


Lower operating cash flow                  Lower financing cash flow
A) Securitize                                             Securitize
B) Borrow                                                  Securitize
C) Securitize                                             Borrow





答案:B
The cash received from borrowing would be reported as a financing inflow. The cash received from securitizing the receivables would be reported as an operating inflow. So, borrowing would result in lower operating cash flow and higher financing cash flow. Securitizing would result in lower financing cash flow and higher operating cash flow.

PalacioHill

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