A firm has just ended its calendar year making a sale in the amount of P250,000 of merchandise purchased during the year at a total cost of P180,000. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. The possible problem this firm may face is * lack of cash flow. inability to receive credit. high leverage. low profitability.
A firm has just ended its calendar year making a sale in the amount of P250,000 of merchandise purchased during the year at a total cost of P180,000. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. The possible problem this firm may face is * lack of cash flow. inability to receive credit. high leverage. low profitability.
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 15P
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![A firm has just ended its calendar year making a sale in the amount of P250,000 of
merchandise purchased during the year at a total cost of P180,000. Although the firm paid in
full for the merchandise during the year, it has yet to collect at year end from the customer.
The possible problem this firm may face is * A
lack of cash flow.
inability to receive credit.
high leverage.
low profitability.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49d6e6d0-335f-4c2c-8c96-5a22eee80ca5%2F6e3ba015-9092-4264-a5f6-63c15a81cfc5%2F5qlqe03_processed.png&w=3840&q=75)
Transcribed Image Text:A firm has just ended its calendar year making a sale in the amount of P250,000 of
merchandise purchased during the year at a total cost of P180,000. Although the firm paid in
full for the merchandise during the year, it has yet to collect at year end from the customer.
The possible problem this firm may face is * A
lack of cash flow.
inability to receive credit.
high leverage.
low profitability.
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