A company's ability to pay its short-term obligations depends on many factors including how quickly it is able to sell its merchandise inventory.

Question

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A company's ability to pay its short-term obligations is dependent on its cash flow and cash conversion cycle, which includes how quickly it is able to sell its merchandise inventory. If a company is unable to generate enough cash from its inventory sales, it may struggle to meet its short-term obligations.

A Company's Ability to Pay Its Short-Term Obligations Depends on Many