4. A manufacturer is in the habit of offering liberal payment terms to distributors: They can pay...

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4. A manufacturer is in the habit of offering liberal payment terms to distributors: They can pay anytime within 45 days of receipt of the merchandise. The manufacturer currently has a bank line of credit to cover accounts receivable and pays an interest rate

(prime + 1%) on the balance on loan from the bank. One of the manufacturer’s key distributors offers to pay for shipments by immediate bank funds transfer upon receipt of merchandise if the manufacturer will reduce the price by 1%. Does this offer close a gap? If so, what sort (demand side, supply side, what flow)?

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Asim farooq

I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening. My Expert Service Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities

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