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Hospital A has a higher days sales outstanding (days in AR) ratio than Hospital B. Therefore A) Hospital A sells less on credit than Hospital

Hospital A has a higher days sales outstanding (days in AR) ratio than Hospital B. Therefore

A) Hospital A sells less on credit than Hospital B.

B) Hospital A has a higher percentage of cash to credit sales than Hospital B.

C) Hospital A must be collecting its accounts receivable faster than Hospital B, on average.

D) Other things being equal, Hospital B has a cash flow advantage over Hospital A.

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