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

Explain the nature of a concessionary loan, What is the nature of a concess...

What is the nature of a concessionary loan and how is it handled in the APV model? A concessionary loan is a loan that is provided by a governmental body at below the normal ma

Revenue bonds, Revenue bonds are the securities issued for financing ...

Revenue bonds are the securities issued for financing an entity for general      public-purpose. The securities issued for entity financing are backed up with the

Calculate the present price of the stock, Company Z has just been organized...

Company Z has just been organized. It is expected to experience zero growth next year and grow at a 10% rate in year 2.  Beginning in the third year the company should attain a 5%

What is business combinations, Q. What is Business Combinations? Combin...

Q. What is Business Combinations? Combining of two entities. Under PURCHASE METHOD OFACCOUNTING, one entity is deemed to attain another and there is a new basis of accountingfo

Define leveraged buyout, What is an LBO?  What are the risks for the equity...

What is an LBO?  What are the risks for the equity investors and what are the potential rewards? A term leveraged buyout is a purchase of a publicly owned corporation through a s

Ratio analysis, How can we calculate ration analysis in financial managemen...

How can we calculate ration analysis in financial management?? Determine the ration analysis? Need assignemt help on this topic

What are the limitations of ratio analysis, What are the Limitations of rat...

What are the Limitations of ratio analysis A ratio on its own is meaningless. Accounting ratios should always be interpreted in relation to other information, for illustration:

Compare and contrast mutual and stockholder-owned savings, Compare and cont...

Compare and contrast mutual and stockholder-owned savings and loan associations. Some loan and savings associations are owned by stockholders, just as commercial banks and oth

Transfer price, The price charged when one segment of an organization provi...

The price charged when one segment of an organization provides goods or services to another segment of the organization.

Challenges facing by the finance manager, FUNCTIONS / RESPONSIBILITIES / CH...

FUNCTIONS / RESPONSIBILITIES / CHALLENGES FACING THE FINANCE MANAGER Today's finance manager is facing a lot of challenges, which are the direct result of the dynamic growth in

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd