Read the case study “Eastern Electronics” and answer the following questions:

1) Analyze the performance of Eastern Electronics over the 20x3 through 20x6 time period. Also, determine if the budget projections in 20x7 and 20x8 indicate any changes either favorable or unfavorable in the company performance.

2) Comment on the accounts receivable policy being implemented by Alex for the companies in the former Soviet countries. Do these policies appear sound? What are some of the advantages and disadvantages of such a policy?

3) Comment on the inventory policy being implemented by Alex for the companies in the former Soviet countries. Do these policies appear sound? What are some of the advantages and disadvantages of such a policy?

4) Should Hans give Alex a raise for the work he has done over these last three years? Why or why not? How would you propose to pay Alex for the work he does for Eastern Electronics?

5) Should Eastern Electronics undergo their proposed capital expansion program, especially with their focus in the former Soviet countries? Why or why not?