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Earnings quality warning sign

For three years a company reports net income of about 200 crore, but operating cash flow is about 50 crore each year and receivable days keep rising. What does this most suggest?

A.Earnings quality is weak; revenue may be recognised aggressively or collections are poorB.The company is very conservative in its accountingC.Depreciation is too highD.The company should pay a higher dividend

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Earnings quality warning sign

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