《CorporateFinance》Chap028.pptVIP

* * Obviously, the timeline is not drawn to scale, and the distance between each point would differ across companies. * Cash discounts are designed to shorten the receivables period; however, you reduce your net sales level when discounts are taken, unless the discount entices new customers to purchase. The last statement on the slide implicitly assumes that the customer eventually pays and does so on time. * * 100*1000=amount of immediate CF needed to cover the extension in time to pay. * Credit scoring is less subjective than the five Cs, but firms have to be careful with the information t