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

Bid-ask quotes, As the cash manager of your company, you wish to buy $1,0...

As the cash manager of your company, you wish to buy $1,000,000 in 30-day Treasury bills. You obtain the following bid/ask quotes from three dealers:

Financial analysis task force, Task I am sure you are aware that the c...

Task I am sure you are aware that the corporate annual meeting is coming up soon. As part of the Treasurer's presentation, I have been asked to propose a Special Capital Requi

Define forward exchange rate will be an unbiased predictor, Explain the con...

Explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot exchange rate. Answer:  the conditions when forward exchange rate

Determine the types of users, Determine the Types of users Investors -loo...

Determine the Types of users Investors -look at the risk of their investment, future growth and profitability. Managers / employees-have access to more information and will want

Inflated budgeted expense account, Write down what processes and data you w...

Write down what processes and data you would analyse when looking at the following scenarios and write down any improvements you could include to ensure that the problem would be l

What do you mean by s corporation, Q. What do you mean by S Corporation? ...

Q. What do you mean by S Corporation? S Corporation - An S Corporation is a corporation that, under Internal Revenue Code, is normally not subject to federal income taxes. In i

Payback period and irr, To look into the feasibility of a new production sy...

To look into the feasibility of a new production system, K-Pad, the largest P.C. producer in the region, has spent $88,000 on the technical feasibility study. In view of the favora

Trial balances and bank reconciliation, Trial Balances: If the trial ba...

Trial Balances: If the trial balance does not result in a "0", the various records will need to be reviewed to pinpoint the spot where the unbalance occurred and any necessary

Venture Capital, Difference between venture capital and conventional financ...

Difference between venture capital and conventional financing

Bond Valuation, The Pennington Corporation issued a new series of bonds on ...

The Pennington Corporation issued a new series of bonds on January 1, 1979. The bonds were sold at par ($1,000), have a 12 percent coupon, and mature in 30 years, on December 31,

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