Financial statements for possibility of bad debts

Reference no: EM13154345

You own an automobile parts company and have been approached by a leading car manufacturer to supply parts to the company. How would you determine that the car manufacturer has a good record of servicing sales and paying its suppliers? What are the signs you would look out for in the financial statements for the possibility of bad debts? Give reasons for your answers.

Reference no: EM13154345

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