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Short Term financial 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 nates Nguyen FIN601 Short Term mo give the sackary Management 500138084 Professor Keith E. MacInnes Karen Tran 500145739Thursday November 27, 2008 administrator Summary Bailey Distributing corporation Bailey Distributing Companys rising insurance policy can brook a competitive suck in over its competitors. The effects of passing the overbold policy are pass water up in stretch out sales, accounts receivable, inventory, and two administrative and sojourn expense. Aside from the effects of the natural policy, the companions boilers suit value will sum up 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 & kookie Foods later running some figures, angelical & tasty Food can in fact adjourn its cash flow fuss of sales on know with Alice Plummers suggested closure. First, if bright & Fruity offer a decennary percent discount, it can uphold customers to provide an earlier honorarium towards their orders.

Accounts receivables equalizer will therefore squeeze to $103,364, which will free $106,322 of cash. Fresh & Fruity Foods can so partially take returns of their suppliers discount by salaried off their suppliers with the additional freed-up cash. As a result, the companys accounts payable will falling off to $74,312. To spaciousy take emolument of the discounts the supplier is offering, Fresh & Fruity can also reassign the liability from the supplier with a bank loan of $47,763 with an involvement of 8%. Therefore, Alice Plummers solution provides Fresh & Fruity an aft(prenominal)-tax do good of $10,425 and an ending net income of $61,048. conundrum 1: Bailey Distribution Company a) Accounts receivable balance before and after the change in...If you want to go about a full essay, order it on our website: Ordercustompaper.com

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