Accounts receivable are sometimes not collected, Financial Management

Assignment Help:

Accounts receivable are sometimes not collected.Why do companies extend trade credit when they could insist on cash for all sales?

Extending trade credit almost for all the time leads to more sales. If the incremental cash flows, comprising the investment in accounts receivable give a positive NPV the decision to extend trade credit would increase the value of the firm.

Related Discussions:- Accounts receivable are sometimes not collected

When are the financial crises occurred, When are the financial crises occur...

When are the financial crises occurred? Financial crises arise where there is a large raise in asymmetric information into financial markets. Asymmetric information arises whil

Asset management ratios (turnover ratios), Asset management Ratios (Turnove...

Asset management Ratios (Turnover Ratios) Receivables Turnover Ratio It is a measure of receivables turnover. Payables Turnover Ratio It is a

Capital budgeting, Serene Hall ?? Assignment As a consequence of the high l...

Serene Hall ?? Assignment As a consequence of the high levels of stress being recorded in the UK, and a general shift towards a healthier more relaxed lifestyle, as an essential in

#title.BA300, Answers

Answers

Define how does accounts receivable factoring work, How does accounts recei...

How does accounts receivable factoring work? What are the benefits to the two parties involved? What are the risks? Factoring is while one firm sells accounts receivable that i

Calculate super normal profit, The economic analysis is done for Schlumberg...

The economic analysis is done for Schlumberger, oilfield service company. They are # 1 in terms of market caps, revenue and employees globally. If any references are used / outside

Participating budgeting and slow budgeting, explain participating budgeting...

explain participating budgeting and slow budgeting.

What is the debt security in the financial term, What is the debt security ...

What is the debt security in the financial term? Debt instruments are instruments which promise the payment of specified sums to the investor. Illustrations of debt instruments

Explain how management goals are incorporated into pro forma, Explain how m...

Explain how management goals are incorporated into pro forma financial statements. Management locates a target goal, and forecasters produce pro forma financial statements within

State the economic conditions of cost of capital, State the economic condit...

State the economic conditions of cost of capital General economic conditions These include demand for and supply of capital within the economy and level of expected inflatio

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages