Question: This is for my FIN/375 class. The average collection period ratio is defined as shown below: Accounts Receivable/ (Sales/365) It shows how many days on

This is for my FIN/375 class.

The average collection period ratio is defined as shown below:

Accounts Receivable/ (Sales/365)

It shows how many days on average, it takes to collect your receivables

If your average collection period was 30 days last year and it is now 45 days, what does that imply? What is happening to your cash position?

I need help with this question.

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