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A company has the following information for 2014 and 2015 The company also has credit terms for receivables of 2/10, n/30 Given this information which
A company has the following information for 2014 and 2015 The company also has credit terms for receivables of 2/10, n/30 Given this information which statement would be most accurate? The decrease in DSR indicates a decline in the company's short-term solvency, but they are still collecting faster than the credit policy terms. The change in DSR indicates profitability for this company. The decrease in DSR indicates improvement in long term solvency or the company's ability to repay long-term debt. The decrease in DSR indicates improvement in short-term solvency, but the company is still taking longer to collect receivables than what is required by their credit policy
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