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One company's Balance Sheet shows huge increase in its Accounts Receivable (A/R) compared with that of the previous year. Which of the following is the

One company's Balance Sheet shows huge increase in its Accounts Receivable (A/R) compared with that of the previous year. Which of the following is the most reasonable analysis? Group of answer choices 1. The increase of the A/R indicates the huge growth of its sales in the current year. 2. The increase of the A/R indicates that the company has not collected cash for its sales from its customers. By doing so, the company's cash flows of this year must have decreased a lot.. 3. The increase of the A/R indicates that the company owes a lot to its creditors this year. When the payment is made, the company will decrease its cash flows by a large amount. 4. The increase of A/R indicates that the company failed to collect cash from its sales. Due to the failure, it must have reported huge losses.

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