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(^226) Financial Management initial effect of granting long credit periods may be adverse because of the extra costs involved bu ...

Management of Receivables^227 Credit Terms As discussed previously, credit policy has a direct influence on sales, investment le ...

(^228) Financial Management will be that more customers will take the discount. However, they feel that with the present plans t ...

Management of Receivables^229 Under plan A total sales are Rs 36 crore + 1.8 crore = Rs 37.8 crore. The rupee amount subject to ...

(^230) Financial Management The analysis here would be similar to the one done for the credit period. Gross sales volume under e ...

Management of Receivables^231 Discount Period: The analysis of changing discount periods is very similar to the analysis for cha ...

(^232) Financial Management simultaneously. For example, the Mitsui Corporation may seek to evaluate new credit terms in which t ...

Management of Receivables^233 Table 4: Analysis of Credit Terms Changing Credit Terms for Mitsui Corporation. a Before credit-re ...

(^234) Financial Management two factors need to be recognised before a firm implements a collection policy that equates marginal ...

Management of Receivables^235 (c) Bank references - these may not give a lot of information but they tend to use a series of sta ...

(^236) Financial Management years must be a warning against the automatic granting of unlimited credit. Vetting Incoming Orders ...

Management of Receivables^237 Debt Collection There must be no slackness in pursuing the collection of debts. In most business p ...

(^238) Financial Management unaudited reports. The financial statements are useful for calculating various liquidity, leverage, ...

Management of Receivables^239 and ability to pay. Payments during the discount period rate 10 per cent. Payments during the cred ...

(^240) Financial Management Inventory Turnover. The seventh factor is the inventory turnover (I). A higher inventory turnover im ...

Management of Receivables^241 past. Past customers can be readily classified into good risk and bad risk categories. The financi ...

(^242) Financial Management 50 per cent of the amount collected. For small delinquent accounts this may be the only feasible alt ...

Management of Receivables^243 l the guarantor does not normally expect to be called upon to pay, and there may be difficulties i ...

(^244) Financial Management Rs. No credit One month’s Credit Two month’s Credit Sales 120,000 160,000 240,000 Debtors 13,333 40, ...

Inventory Management^245 l Purchase order processing costs per unit or Rs. value of purchases ( and possibly even in total as sh ...