Problem: 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.