Impact of Extending Accounts Payable Terms

ABC Corporation is a mid-sized manufacturing firm that has always focused on maintaining strong relationships with its suppliers. Recently, the management team has been considering various strategies to optimize cash flow and working capital. One such strategy involves extending their payment terms with suppliers, allowing longer durations before settling invoices. This change could potentially improve the firm's liquidity position. However, management must carefully evaluate how shifting the accounts payable management strategy may impact supplier relationships and operational aspects.

Considering the implications of this decision, which of the following outcomes is most likely to result from extending accounts payable payment terms?