Question 10 3 pts Luckys Convenience Store is expecting that

Question 10 3 pts Lucky\'s Convenience Store is expecting that total sales will be lower next year, but cash sales remain the same (the lost sales are all credit sales). All else equal, what will happen to operating cash flow (OCF), net woking capital (NWC), and net cash flow (NCF) for next year? OCF decreases, NWC increases, NCF unchanged OCF increases, NWC increases. NcF decreases O OCF decreases, NWC decreases, NCF unchanged OCF increases, NWC decreases, NCF increases

Solution

Since sales will decrease as a result operating cash flow will also decrease .

Net working capital (NWC) will also decrease due to fall of credit sales (thus decrease in accounts receivable balance)

Net cash flow will remain changed as it considers only cash sales so fall of credit sales has no impact on net cash flow

correct option is \"C