Explain what financial problems, if any, may be created by each of the following

Question

Explain what financial problems, if any, may be created by each of the following company practices: a) the company doesn't offer credit to its customers or accept credit card payments for its retail sales. b) The company has a high percentage of bad debts on  its accounts receivable. c) The company is late in paying some of its suppliers. d) Many customers are complaining about substantial product quality defects. e) The company has a substantial backlog of orders.

Please answer all parts of this question thoroughly. Please do not repeat any answers that have already been given on Chegg as they are not thorough enough. If answers aren't thorough or are repeated, I will not award points.

Explanation / Answer

Lose sales from customers who are unwilling or unable to pay in cash.

Lose profits and cash flow due to high bad debt expenses

Lose credit privileges and be forced to pay in cash.

Lose customers and sales due to customers going elsewhere. lose reputation as quality firm

Lose customers ans sales because of a failure to fill orders on a timely basis.

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