Finance

pick 1: Problem Statement I am surely coming to the enigma statement which I lead near serious in the financial community vigilant by tom Appleby and Alice Plummer who were the president and treasurer in the heady & round the bend Foods Company. lively & Fruity Foods, Inc. does not do enough coin to cave in guts its pull up stakesr because they have high measures due. Tom and Alice are intentionning to press discount to their customers for quicker due collection so that the alliance tramp commensurateness the account payable. Also, they attempt to keep winning long-term debt for paying pole the supplier further. In short, Fresh & Fruity Foods, Inc. are approach notes flow line which means they fail to construe whether this plan can provide exculpate get for the corporation by working with the numbers. Part 2: Deeper Analysis Based on the current balance sheet of Fresh & Fruity Foods, Inc., accounts receivable is 71.61% and cash is 1.22%, munime nt is 27.17%. The average collecting period is 64 days by cypher with $209,686 carve up by $3276, at the same time, cursory gross sales are $3,725 by calculating with $1,179,000 divided by 360 days. The company now is facing the problem which cash shortage that need 67 days to pay back suppliers because of high accounts receivable and slow collection.

If they want to examine whether this plan can provide net benefit for the company by working with the numbers, they depart compare the proposal net income with the current net income in hunting lodge to increase the gelt in income statement. Furthermore, we can calcul ate net income so that the benefit is disch! arge to be the savings of taking suppliers 2 percent discount. However, we need to observe price of goods sell, the raw sale, and rice beer expense on bank loan. Firstly is cost of goods sold. employment $1,241,053 divided by $1,179,000 is 1.05, so gross sales will increase 1.05 measure. On the one hand, cost of goods sold can need more raw materials for production which is 1.05 times in order to...If you want to get a good essay, order it on our website: OrderCustomPaper.com

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