Question: Explain how trade credit allows firms to use their suppliers
Explain how trade credit allows firms to use their suppliers as sources of short-term funds.
Answer to relevant QuestionsState the characteristics of sound net working capital management.A firm collects 60 percent of its monthly sales immediately and the rest a month later; its production costs are 80 percent of sales, and it holds two months of sales in inventory. It pays 40 percent of its bills immediately ...Manitoba Services is considering undertaking a new order that would cause its average days of revenues in payables (ADRP) to decrease from 58 days to 45 days, while its average collection period (ACP) will remain at 90 days ...State the principle of the optimal cash balance.Explain how commercial paper differs from bankers’ acceptances.
Post your question