What financial problems may occur if a company has:
October 1st, 2022
What financial problems may occur if a company has:
– a high average collection period
– has a history of paying its accounts payable late
– a cash-only sales policy and it doesn’t offer or accept any credit
– a high percentage of bad debts,
– reputation for having a substantial backlog of orders
– and often takes twice as long as its competitors to deliver orders
– and high percentage of merchandise returned by customers because of product quality defects.