The author presents evidence that recently Southwest Airlines had a ne

The author presents evidence that recently Southwest Airlines had a negative working capital gap. Which of the following reasons is likely to be primarily responsible for this enviable situation.

A) Southwest borrows a lot of money short-term thus keeping their borrowing costs low.
B) Southwest receives payment from customers in advance of most flights.
C) Southwest pays for fuel far in advance of the flights.
D) Southwest grants unusually long credit terms to encourage high levels of accounts receivable

ANSWER

B