A large corporation has a DPO of 90 days, while the industry average is 60 days. What might this indicate about the corporation's operations?

• A. The corporation is using supplier credit as a form of interest-free financing.
• B. The corporation is likely to face cash flow issues due to delayed payments.
• C. The corporation is not competitive in its industry.
• D. The corporation has poor relationships with its suppliers.

Answer: (A)