财务管理ch5-3应收款和库存.pptVIP

Chapter 5-3 Accounts Receivable and Inventory Management 应收账款与存货管理 Credit and Collection Policies of the Firm Credit Standards(信用标准） Five Cs of Credit Character – willingness to meet financial obligations Capacity – ability to meet financial obligations out of operating cash flows Capital – financial reserves（储备） Collateral – assets pledged as security Conditions – general economic conditions related to customer’s business Credit and Collection Policies of the Firm Credit Terms（信用条款） Credit Period -- The total length of time over which credit is extended to a customer to pay a bill. For example, “net 30” requires full payment to the firm within 30 days from the invoice date. Credit and Collection Policies of the Firm Credit Terms Cash Discount -- A percent (%) reduction in sales or purchase price allowed for early payment of invoices. For example, “2/10” allows the customer to take a 2% cash discount during the cash discount period. Terms of Sale Basic Form: 2/10 net 45 2% discount if paid in 10 days Total amount due in 45 days if discount not taken Buy $500 worth of merchandise with the credit terms given above Pay $500(1 - .02) = $490 if you pay in 10 days Pay $500 if you pay in 45 days Example: Cash Discounts Finding the implied interest rate when customers do not take the discount Credit terms of 2/10 net 45 and $500 loan $10 interest (.02*500) Period rate = 10 / 490 = 2.0408% Period = (45 – 10) = 35 days 365 / 35 = 10.4286 periods per year EAR = (1.020408)10.4286 – 1 = 23.45% The company benefits when customers choose to forego discounts Credit and Collection Policies of the Firm Collection Policy and Procedures The firm should increase collection expenditures until the marginal reduction in bad-debt losses equals the marginal outlay to collect. Analyzing the Credit Applicant Obtaining information on the credit applicant Analyzing this information to determine the applicant’s creditworthiness Making the credit decision Inventory Management and Control