The credit policy of Home Living Stores is 2/10 net 30. At present 25% of customers take advantage of the discount, 55% pay within the net period, and the remainder pay within 42 days of invoice. What will the effect on receivables be if all customers take the discount? cannot be determined lower than the present level higher than the present level no change from the present level
The credit policy of Home Living Stores is 2/10 net 30. At present 25% of customers take advantage of the discount, 55% pay within the net period, and the remainder pay within 42 days of invoice. What will the effect on receivables be if all customers take the discount? cannot be determined lower than the present level higher than the present level no change from the present level
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 6P
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QUESTION 11
The credit policy of Home Living Stores is 2/10 net 30. At present 25% of customers take advantage of the discount, 55% pay within the net period, and the remainder pay within 42 days of invoice. What will the effect on receivables be if all customers take the discount?
-
cannot be determined
-
lower than the present level
-
higher than the present level
-
no change from the present level
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