What financial problems may occur


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.

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Finance Basics: What financial problems may occur
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