财务管理基础13版_10b课件.pptVIP

10b.* Van Horne and Wachowicz, Fundamentals of Financial Management, 13th edition. ? Pearson Education Limited 2009. Created by Gregory Kuhlemeyer. Chapter 10 – Support Accounts Receivable and Inventory Management Remember? Credit and Collection Policies of the Firm (1) Average Collection Period (2) Bad-debt Losses Quality of Trade Account Length of Credit Period Possible Cash Discount Firm Collection Program Example of Relaxing Credit Standards The firm is currently producing a single product with variable costs of $20 and selling price of $25. Relaxing credit standards is not expected to affect current customer payment habits. Additional annual credit sales of $120,000 and an average collection period for new accounts of 3 months is expected. The before-tax opportunity cost for each dollar of funds “tied-up” in additional receivables is 20%. Example of Relaxing Credit Standards Review how we can use Excel to analyze this type of problem (see ‘Relax Standards’ tab)! The $24,000 gain exceeded the $4,800 cost for a net benefit of $19,200 so make the change! Now make some changes using Excel. Will you make the same decision if an increase of only 3,000 units occurs and it takes 4 months to collect? Remember? Credit and Collection Policies of the Firm (1) Average Collection Period (2) Bad-debt Losses Quality of Trade Account Length of Credit Period Possible Cash Discount Firm Collection Program Example of Relaxing the Credit Period Basket Wonders is considering changing its credit period from “net 30” to “net 60”. The firm is currently producing a single product with variable costs of $20 and a selling price of $25. Additional annual credit sales of $250,000 from new customers are forecasted, in addition to the current $2 million in annual credit sales. The before-tax opportunity cost for each dollar of funds “tied-up” in additional receivables is 20%. Example of Relaxing Credit Standards Review how we can use Excel to analyze this type of problem (See ‘