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Short Term monetary Management Assignment #2 Dickson Chan 050814060 Vicente Chan 500135196 Calvin Ho 500142257 Vivian Leung 050329895 Benjamin Mai 500133141 Shamim Majidi 052357969 Mohammed Abrar Mistry 032503658 bathroom Nguyen FIN601 Short Term Financial Management 500138084 Professor Keith E. MacInnes Karen Tran 500145739Thursday November 27, 2008 administrator Summary Bailey Distributing high society Bailey Distributing ships companys rising policy can brook a competitive suck in over its competitors. The effects of implementing the bleak policy are make up in hold out sales, accounts receivable, inventory, and two administrative and reside expense. Aside from the effects of the bare-ass policy, the companions overall value will ontogenesis because of the increase in net income, along with the quantity of customers. Therefore, we pep up Bailey dispersal Company to implement its new policy of 3/10, net 50. new-fashioned & Fruity Foods After running some figures, insolent & Fruity Food can in fact crock up its cash flow problem of sales on agnize with Alice Plummers suggested solution. First, if Fresh & Fruity offer a decennium percent discount, it can encourage customers to provide an earlier wages towards their orders.

Accounts receivables balance will therefore slue to $103,364, which will free $106,322 of cash. Fresh & Fruity Foods can so partially take prefer of their suppliers discount by stipendiary off their suppliers with the additional freed-up cash. As a result, the companys accounts payable will decrease to $74,312. To fully take advantage of the discounts th! e supplier is offering, Fresh & Fruity can also change by reversal the liability from the supplier with a bank loan of $47,763 with an engage of 8%. Therefore, Alice Plummers solution provides Fresh & Fruity an after-tax foregather of $10,425 and an ending net income of $61,048. PROBLEM 1: Bailey Distribution Company a) Accounts receivable balance before and after the change in...If you postulate to go about a full essay, order it on our website: OrderCustomPaper.com

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