A firm has just ended its calendar year making a sale in the amount of P250,000 of merchandise purchased during the year at a total cost of P180,000. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. The possible problem this firm may face is * lack of cash flow. inability to receive credit. high leverage. low profitability.

A firm has just ended its calendar year making a sale in the amount of P250,000 of merchandise purchased during the year at a total cost of P180,000. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. The possible problem this firm may face is * lack of cash flow. inability to receive credit. high leverage. low profitability.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 15P

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