In his preliminary cash budget, Barnes has assumed that all sales are collected and, thus, that SKI

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In his preliminary cash budget, Barnes has assumed that all sales are collected and, thus, that SKI has no bad debts. Is this realistic? If not, how would bad debts be dealt with in a cash budgeting sense?

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Fundamentals of Financial Management

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Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Oct 05, 2011 09:53 AM

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In his preliminary cash budget, Barnes has assumed that all sales are collected and, thus, that SKI

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It is not realistic to assume zero bad debts When credit is granted ...View the full answer

Fundamentals of Financial Management

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