Question

If a financial analyst decreases the "Days Sales Outstanding" (DS

  • O assumption in a 5-year projection model while keeping the revenue forecast unchanged, how will this adjustment alter the projected financial statements?
A Accounts Receivable will increase, causing projected Operating Cash Flow to decrease.
B Net Income will increase due to immediate revenue acceleration.
C Accounts Receivable will decrease, resulting in an increase in projected Operating Cash Flow.
D Accounts Payable will decrease, creating a net reduction in cash balances.
E The model's projected working capital will remain entirely unchanged.
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