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Statement # 3 : One way to interpret the change in Green accounts receivable balance from Year 1 to Year that more purchased new than
Statement #: One way to interpret the change in Green accounts receivable balance from Year to Year that more purchased new than paying off existing credit This statement because The decrease from $ million to $ implies a net decrease in accounts receivable and that more customers are paying off their receivables balances than are buying on credit The in accounts receivable means either that Year s existing credit customers are not paying off their owed balances and are making additional purchases on credit, or that Year credit customers have repaid their owed balances and Year credit sales have exceeded Year s credit The change from $ million to $ million reflects a net accumulation of new credit sales
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