Question
9) This year, when Hero Company provided you with financial information, you noticed in your review that accounts receivable days on hand had increased substantially
9) This year, when Hero Company provided you with financial information, you noticed in your review that accounts receivable days on hand had increased substantially from last year. Which one of the following should you do to analyze this situation?
A) Calculate accounts payable days on hand to see if the company is slowing payments to suppliers in response to the slower collections. B) Ask for accounts receivable agings and determine the cash flow impact of the slowdown in accounts receivable days on hand. C) Calculate the cash impact of any change in inventory days on hand. D) Calculate how much any sales increase impacted accounts receivable days on hand...
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