What are the advantages and disadvantages of stretching payables? If you owned your own business, would you

Question:

What are the advantages and disadvantages of stretching payables? If you owned your own business, would you do it? Why or why not?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Practical financial management

ISBN: 978-0324422634

5th Edition

Authors: William r. Lasher

See More Books

Question Posted: Sep 13, 2012 04:13 AM

See More Questions

What are the advantages and disadvantages of writing an operating system in a high-level language, such as C?
What are the advantages and disadvantages of being a multinational company in such a situation?
What are the advantages and disadvantages of a sole proprietorship?
The following two-dimensional problems all have mixed boundary conditions involving both traction and displacement specifications. Using various field equations, formulate all boundary conditions for...
Each of 205 consumers was asked to choose which of three products they preferred. Product A was chosen hv S3 of the consumers, product B was chosen by 75 of the consumers, and product C was chosen by...
Budgetary slack and ethics. (CMA) Marge Atkins, the budget manager at the Norton Company, a manufacturer of infant furniture and carriages, is working on the 2008 annual budget. In discussions with...
Weighted-average method. $tar Toys manufactures one type of wooden toy figure. It buys wood as its direct material for the Forming Department of its Fredericton plant. The toys are transferred to the...
Colorado Mountain Mining paid $507,700 for the right to extract mineral assets from a 500,000-ton deposit. In addition to the purchase price, Colorado also paid a $600 filing fee, a $1,700 license...
Required information [The following information applies to the questions displayed below) Burchard Company sold 31,000 units of its only product for $18.80 per unit this year. Manufacturing and...
A similar instruction format is used in the Zilog Z8000 microprocessor family. In this case, there is a direct port addressing capability, in which a 16-bit port address is part of the instruction,...
You work in the finance department of HiTech Inc. The firms owner and CEO, Charlie Dollars, is very profit oriented. He understands that short-term interest rates are quite low at the moment, and has...
Whats the difference between a promissory note, a line of credit, and a revolving credit agreement? Are they mutually exclusive? That is, might one be part of the other?
A dilute aqueous slurry containing solids with a diameter of $20 \mu \mathrm{m}$ and $S G=1.5$ is fed to a centrifuge rotating at $3000 \mathrm{rpm}$. The radius of the centrifuge is $18...
The manager of a division that produces add-on products for the automobile industry had just been presented the opportunity to invest in two independent projects. The first is an air conditioner for...
Ook ht nces Case 5-2 (Algo) Shouldice Hospital in Canada is widely known for one thing-hernia repair! In fact, that is the only operation it performs, and it performs a great many of them. Over the...
A trunk of cone made of Aluminum (E = 70 GPa) and fixed between two rigid walls and without any preloading or thermal input is uniaxially loaded with a force of magnitude of 100 N at point C (300 mm...
Honeyville Company had sales for the year of $ 1 0 0 , 0 0 0 . Of these sales, only $ 3 0 , 0 0 0 were collected in cash. The other $ 7 0 , 0 0 0 is expected to be collected in cash next year. For...
The company does not have a license for Dynamics 365. If you decide to use a Portal Template how many choices will you have
Explain the difference between cost flow and the movement of goods.
A condenser (heat exchanger) brings 1 kg/s water flow at 10 kPa quality 95% to saturated liquid at 10 kPa, as shown in Fig. P4.91. The cooling is done by lake water at 20C that returns to the lake at...
Consider the static method cube() below. public static void cube(int i) { i = i * i * i; } How many times is the following for loop iterated? for (int i = 0; i < 1000; i++) cube(i);
East Shore Inc. has an ACP of 60 days and daily credit sales of $75,000. A factor offers a 60-day accounts receivable loan equal to 90 percent of accounts receivable. The quoted interest rate is 10...
ABC Inc. grants credit terms of net 25. It is considering a new policy that involves more stringent credit terms: net 20. As a result, the price of its product will stay the same at $45. The expected...
Describe the four inventory management approaches.
Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an all - equity firm that specializes in this business. Suppose Harburtin ' s equity beta is 0 . 8 7 , the...
Ned Allen opened a medical practice in Los Angeles, California, and had the following transactions during the month of January. (Click the icon to view the January transactions.) Journalize the...
do you need more information or are you working on this? Irene Watts and John Lyon are forming a partnership to which Watts will devote one- half time and Lyon will devote full time. They have...

What are the advantages and disadvantages of stretching payables? If you owned your own business, would you

Question:

Step by Step Answer:

Slowing cash payments to vendors is known as stretching payables or leaning on the trade It generall...View the full answer

Practical financial management

Students also viewed these Corporate Finance questions