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If a firm reduced its allowance for bad debts from 2.5% to 1.5%, would there be any immediate impacts on operating income or operating cash

If a firm reduced its allowance for bad debts from 2.5% to 1.5%, would there be any immediate impacts on operating income or operating cash flows?

A firm has been generating a stable ROE despite a steadily falling operating income. Give one reason why this possible

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