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Allied radio has received a large order from a major retailer of 2 0 0 , 0 0 0 transistor radios, which will more than
Allied radio has received a large order from a major retailer of transistor radios, which will more than double its annual sales. Allied will ship the radios in the fourth quarter of but will not receive payment until the first quarter of more than four months later. Which of the following best describes the situation Allied radio is likely facing at the end of
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The company is in good shape with both profits and positive cash flow
The company is in good shape with both profits and positive cash flow
The company has profits but has negative cash flow resulting from manufacturing the big order
The company has profits but has negative cash flow resulting from manufacturing the big order
Since the company will not be paid until they will experience losses and negative cash flow
Since the company will not be paid until they will experience losses and negative cash flow
The company will have positive cash flow but losses
The company will have positive cash flow but losses
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