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Short Term pecuniary 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 friendship Bailey Distributing go withs rising policy can brook a competitive suck in over its competitors. The effects of implementing the modern policy are make up in refinement sales, accounts receivable, inventory, and two administrative and reside expense. Aside from the effects of the spic-and-span policy, the companions overall value will enlarge because of the increase in net income, along with the quantity of customers. Therefore, we cheer Bailey dispersal Company to implement its new policy of 3/10, net 50. new-fashioned & F ruity Foods After running some figures, wise(p) & Fruity Food can in fact ignore its cash flow problem of sales on tell apart with Alice Plummers suggested solution. First, if Fresh & Fruity offer a decennium percent discount, it can encourage customers to provide an earlier earnings towards their orders.

Accounts receivables balance will therefore wince to $103,364, which will free $106,322 of cash. Fresh & Fruity Foods can so partially take expediency of their suppliers discount by paying 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 dis! counts the supplier is offering, Fresh & Fruity can also exchange the liability from the supplier with a bank loan of $47,763 with an pursual of 8%. Therefore, Alice Plummers solution provides Fresh & Fruity an after-tax net income 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 requisite to go about a full essay, order it on our website: OrderCustomPaper.com

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