Companies monitor factors such as days sales outstanding (DSO) and inventory levels to assess its ability to collect cash quickly from a potential customer. In your post, Discuss the financial ratios a firm can use to measure the time it will take to collect cash from a potential customer on average. Show how the ratios are computed, and explain how each works. Elaborate on why this is important to a business. Why would a company be willing to sell its accounts receivable at a discounted amount …
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