Discuss the financial ratios a firm can use to measure

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Companies monitor factors such as days sales outstanding (DSO) and inventory levels to assess its ability to collect cash quickly from a potential customer. In your post,

Problem 1: Discuss the financial ratios a firm can use to measure the time it will take to collect cash from a potential customer on average.

Problem 2: Show how the ratios are computed, and explain how each works.

Problem 3: Elaborate on why this is important to a business.

Reference no: EM132777782

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