Greedy Ltd is considering a proposal to change its credit policy from allowing debtors credit of...
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Greedy Ltd is considering a proposal to change its credit policy from allowing debtors credit of 2 months to credit of 3 months. Sales are currently £600,000 p.a. and as a result of the proposed change will increase by 15%. The contribution/ sales ratio is 20% and the cost of capital is 10%. Required Should the proposed change be made? Greedy Ltd is considering a proposal to change its credit policy from allowing debtors credit of 2 months to credit of 3 months. Sales are currently £600,000 p.a. and as a result of the proposed change will increase by 15%. The contribution/ sales ratio is 20% and the cost of capital is 10%. Required Should the proposed change be made?
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The key benefits of the proposed change are that it will increase sales by ... View the full answer
Related Book For
Concepts in Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
Posted Date:
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