What are the three main concerns of a treasurer when investing a firm’s excess cash?
Answer to relevant QuestionsWhy is a short-term investment policy statement necessary? How can a firm use float to slow down its disbursements? What risks arise when a firm lowers its credit standards to try to increase sales volume? The Robinson Company from Problem 2 had net sales of $1,200,000 in 2013 and $1,300,000 in 2014. a. Determine the receivables turnover in each year. b. Calculate the average collection period for each year. c. Based on the ...Suppose Global Manufacturing is planning to change its credit policies next year. It anticipates that 10 percent of each month’s sales will be for cash; two-thirds of each month’s receivables will be collected in the ...
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