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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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