Techmart Corporation is a young start-up firm that produces components for high-resolution televisions. During the last two

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Techmart Corporation is a young start-up firm that produces components for high-resolution televisions. During the last two years, sales have grown dramatically. Currently, Techmart is experiencing a cash shortage and is having difficulty purchasing manufacturing supplies and meeting its weekly payroll. Lately, the company has not been very successful in collecting its accounts receivable. The company offers its clients 90 days to pay on all receivables and does not understand why there is a shortage of cash. What suggestions can you offer the president of Techmart regarding its collection policy? Explain your recommendations. What can Techmart do during the short run to overcome its shortage of cash?

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Accounting Advanced

ISBN: 9780538447553

9th Edition

Authors: Claudia Bienias Gilbertson

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