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Collection of Cash Companies monitor factors such as days sales outstanding and inventory levels to assess its ability to collect cash quickly from a potential

Collection of Cash

Companies monitor factors such as days sales outstanding and inventory levels to assess its ability to collect cash quickly from a potential customer.what financial ratios a firm can use to measure the time it will take to collect cash from a potential customer on average? Show how the ratios are computed, and explain how each works. Elaborate on why this is important to a business.

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