《财务管理》课程PPT教学课件（英文版）Chapter 20 Accounts Receivable and Inventory Management

Ch. 20: Accounts receivable and Inventory Management INVENTOBY o 2002. Prentice Hall, Inc

Ch. 20: Accounts Receivable and Inventory Management © 2002, Prentice Hall, Inc

Accounts ceivable Management Size of investment in Accounts Receivable Percent of credit sales to Total sales Level of sales Terms of sale Quality of customer Collection efforts

Accounts Receivable Management Size of Investment in Accounts Receivable • Percent of Credit Sales to Total Sales • Level of Sales • Terms of Sale • Quality of Customer • Collection Efforts

Accounts ceivable Management Terms of sale quoted as a/b net c, which means deduct a% if paid within b days, otherwise pay within c days example: 3/30 net 60, means deduct 3 if paid within 30 days, otherwise pay the entire amount within 60 days

Accounts Receivable Management Terms of Sale • quoted as a/b net c , which means “deduct a% if paid within b days, otherwise pay within c days.” • example: 3/30 net 60, means “deduct 3% if paid within 30 days, otherwise pay the entire amount within 60 days

Accounts ceivable Management Terms of sale annualized opportunity cost of foregoing a discount

Accounts Receivable Management Terms of Sale • annualized opportunity cost of foregoing a discount:

Accounts ceivable Management Terms of sale annualized opportunity cost of foregoing a discount. a 360 c- b

x Accounts Receivable Management Terms of Sale • annualized opportunity cost of foregoing a discount: a 360 1 - a c - b

Accounts Receivable Management

Accounts Receivable Management

Accounts Receivable Management a 360 X c- b

a 360 1 - a c - b x Accounts Receivable Management

Accounts Receivable Management a 360 X c- b opportunity cost of foregoing 3/30 net 60

a 360 1 - a c - b opportunity cost of foregoing 3/30 net 60: x Accounts Receivable Management

Accounts Receivable Management a 360 X c- b opportunity cost of foregoing 3/30 net 60 03 360 X 1-.03 60-30

a 360 1 - a c - b opportunity cost of foregoing 3/30 net 60: .03 360 1 - .03 60 - 30 x x Accounts Receivable Management

Accounts Receivable Management a 360 X c- b opportunity cost of foregoing 3/30 net 60 03 360 X 1-.03 60-30 =37.11

a 360 1 - a c - b opportunity cost of foregoing 3/30 net 60: .03 360 1 - .03 60 - 30 = 37.11% x x Accounts Receivable Management