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- ABC Inc. has experienced a rapid downturn in sales and missed financing covenants for the first time, putting pressure on its finances. An analysis was conducted to recommend improvements. - Key issues identified include rapidly declining sales, high accounts receivable balances due to slower payments, and increasing returns negatively impacting cash flow. - The analysis found that fixed costs grew faster than sales in recent years, decreasing profits. Cost-cutting measures were implemented but may need to be expanded if sales continue declining.




























