Firm paid in full for the merchandise


A firm has just ended its calendar year asking a sale in the amount of 200,000 of merchandise purchased during the year at a total cost of $150,500. 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:

A. High leverage

B. low profitability

C. Lack of cash flow

D. Inability to receive credit

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Accounting Basics: Firm paid in full for the merchandise
Reference No:- TGS052224

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