Can a company have a default rate on its accounts receivable, Financial Management

Assignment Help:

Can a company have a default rate on its accounts receivable that is too low?  Explain.

A company could comprise a default rate on AR that would be referred too low if by liberalizing credit terms a important increase in sales revenue and cash inflows were to result.  If the increase in the default rate is much more as compared to offset by the increase in sales revenue, after all incremental cash flows are considered a positive NPV could result.


Related Discussions:- Can a company have a default rate on its accounts receivable

Determining optimum liquid balance, Q. Determining Optimum Liquid Balance? ...

Q. Determining Optimum Liquid Balance? Liquid balance (balance of cash and marketable securities) must be maintained at the optimum level. It is the level which gives the minim

Leverage, Evaluate the importance of leverage in financial management of a ...

Evaluate the importance of leverage in financial management of a small scale company

Operating cycle, what is the applicability of the operating cycle in a vege...

what is the applicability of the operating cycle in a vegetaion farm in Uganda

White knight, A friendly potential acquirer sought through a goal organizat...

A friendly potential acquirer sought through a goal organization threatened by a less welcome suitor.

Weighted average, Saven Travel Corporation is considering several investmen...

Saven Travel Corporation is considering several investment opportunities in order to diversify its operations. Mr. Saven, president, is trying to determine the firm''s cost of capi

Cash flows from portfolio of us standard mortgages, The cash flows ...

The cash flows from a portfolio of US standard mortgages have the characteristic of being uncertain. The cash flows from the mortgage consists of three comp

Financial equivalent of the balance, The Federal Minister for the Environme...

The Federal Minister for the Environment is worried about the Greenhouse Effect, one outcome of which would be that Adelaide would have a subtropical climate by the year 2015. This

Explain financial ratio, What is a financial ratio? A financial ratio i...

What is a financial ratio? A financial ratio is a number that denotes the value of one financial variable that is relative to another.  Put much more simply, a financial ratio

Trend analysis, Do you guys provide Trend Analysis assignment help? I need ...

Do you guys provide Trend Analysis assignment help? I need writing a report on Trend Analysis and it is about 2000 words. Let me know. I need to buy your solution.

Profitability index (pi), Profitability Index (PI) : It is a ratio of t...

Profitability Index (PI) : It is a ratio of the present value of the total cash benefits to the present value of the net cash outlay.  The higher the PI, the higher the return.

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