What steps reduce dlg requirement for external finance


Question: DLG manufactures furniture which is stored in its warehouse and then sold in its retail stores. Which two of the following steps will reduce DLG's requirement for external finance? Solution A. Offering longer credit terms to customers. B. Transfer of finished goods from the warehouse to the retail stores. C. Disposing of obsolete inventory in the warehouse. D. Price inflation affecting a number of cash expenses. E. Improvements in the collection rates of outstanding receivables.

 

 

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Accounting Basics: What steps reduce dlg requirement for external finance
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