CD Limited obtained a long-term bank loan and used part of the money to settle some of its suppliers on credit before the due date. What effect did this have on trade payables turnover (days) and on return on capital employed (ROCE)?
- Atrade payables turnover (days): decrease; return on capital employed (ROCE): decrease
- Btrade payables turnover (days): decrease; return on capital employed (ROCE): increase
- Ctrade payables turnover (days): increase; return on capital employed (ROCE): decrease
- Dtrade payables turnover (days): increase; return on capital employed (ROCE): increase