Pineapple Plantations Pty Ltd manufactures sustainable, Pineapple-based products for sale to wholesalers and retailers around Australia and
Question:
Pineapple Plantations Pty Ltd manufactures sustainable, Pineapple-based products for sale to wholesalers and retailers around Australia and New Zealand. Dave Geitz, the manager, has a goal of increasing the market share of the company. Strategies to achieve this goal are increasing marketing and promotional activities, and offering attractive credit terms to new customers. The implementation of both strategies has been successful. Pineapple Plantations is enjoying an upsurge in sales and its accounts receivable balances have increased dramatically. The company now needs to increase its regular orders for raw materials. Dave is concerned that the company will not have sufficient cash available to pay the resultant supplier invoices when they fall due. What is your advice to Pineapple Plantations regarding the financing of the supplier invoices?
Step by Step Answer:
Accounting Business Reporting For Decision Making
ISBN: 9780730369325
7th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond