CD Limited obtained a long-term bank loan and used some of the money to settle part of what it owed to its credit suppliers ahead of time. How would this affect the trade payables turnover (days) and the return on capital employed (ROCE)?
- Atrade payables turnover decrease; return on capital employed (ROCE) decrease
- Btrade payables turnover decrease; return on capital employed (ROCE) increase
- Ctrade payables turnover increase; return on capital employed (ROCE) decrease
- Dtrade payables turnover increase; return on capital employed (ROCE) increase