Click to edit Master style,Click to edit Master text styles,Second Level,Third Level,Fourth Level,Fifth Level,5-,1,Credit and Collection Policies of the Firm,(1),Average,Collection Period,(2),Bad-debt,Losses,Quality of,Trade Account,Length of,Credit Period,Possible Cash,Discount,Firm,Collection,Program,Credit and Collection Policies,Credit Standards,(,信用标准）,Credit Standards,-The minimum quality of credit worthiness of a credit applicant that is acceptable to the firm.,Credit Standards(信用标准）Credit S,Five Cs of Credit,Character,willingness to meet financial obligations,Capacity,ability to meet financial obligations out of operating cash flows,Capital,financial reserves,（储备）,Collateral,assets pledged as security,Conditions,general economic conditions related to customer,s business,Five Cs of CreditCharacter w,Credit and Collection Policies of the Firm,(1),Average,Collection Period,(2),Bad-debt,Losses,Quality of,Trade Account,Length of,Credit Period,Possible Cash,Discount,Firm,Collection,Program,Credit and Collection Policies,Credit Terms（,信用条款）,Credit Period,-The total length of time over which credit is extended to a customer to pay a bill.For example,“net 30”,requires full payment to the firm within 30 days from the invoice date.,Credit Terms,-Specify the length of time over which credit is extended to a customer and the discount,if any,given for early payment.For example,“2/10,net 30.”,Credit Terms（信用条款）Credit Perio,Credit and Collection Policies of the Firm,(1),Average,Collection Period,(2),Bad-debt,Losses,Quality of,Trade Account,Length of,Credit Period,Possible Cash,Discount,Firm,Collection,Program,Credit and Collection Policies,Credit Terms,Cash Discount,-A percent(%)reduction in sales or purchase price allowed for early payment of invoices.For example,“2/10”,allows the customer to take a 2%cash discount during the cash discount period.,Cash Discount Period,-The period of time during which a cash discount can be taken for early payment.For example,“2/10”,allows a cash discount in the first 10 days from the invoice date.,Credit TermsCash Discount-A,Terms of Sale,Basic Form:2/10 net 45,2%discount if paid in 10 days,Total amount due in 45 days if discount not taken,Buy$500 worth of merchandise with the credit terms given above,Pay$500(1-.02)=$490 if you pay in 10 days,Pay$500 if you pay in 45 days,Terms of SaleBasic Form:2/10,Example:Cash Discounts,Finding the implied interest rate when customers do not take the discount,Credit terms of 2/10 net 45 and$500 loan,$10 interest(.02*500),Period rate=10/490=2.0408%,Period=(45,10)=35 days,365/35=10.4286 periods per year,EAR=(1.020408),10.4286,1=23.45%,The company benefits when customers choose to forego discounts,Example:Cash DiscountsFinding,Credit and Collection Policies of the Firm,(1),Average,Collection Period,(2),Bad-debt,Losses,Quality of,Trade Account,Length of,Credit Period,Possible Cash,Discount,Firm,Collection,Program,Credit and Collection Policies,Collection Policy and Procedures,The firm should increase,collection expenditures,until the marginal reduction in,bad-debt losses,equals the marginal outlay to collect.,Collection Procedures,Letters,Phone calls,Personal visits,Legal action,Saturation,Point,Collection Expenditures,Bad-Debt Losses,Collection Policy and Procedur,Analyzing the Credit Applicant,Obtaining information on the credit applicant,Analyzing this information to determine the applicants creditworthiness,Making the credit decision,Analyzing the Credit Applicant,Inventory Management and Control,Raw-materials inventory,Work-in-process inventory,In-transit inventory,Finished-goods inventory,Inventories form a,link,between production and sale of a product.,Inventory types,:,Inventory Management an,Appropriate Level of Inventories,Employ a cost-benefit analysis,Compare the,benefits,of economies of production,purchasing,and product marketing against the,cost,of the additional investment in inventories.,How does a firm determine the appropriate level of inventories?,Appropriate Level of Inven,ABC Method of Inventory Control,Method which controls expensive inventory items more closely than less expensive items.,Review“A”items most frequently,Review“B”and“C”items less rigorously and/or less frequently.,ABC method of inventory control,0 15 45 100,Cumulative Percentage,of Items in Inventory,70,90,100,Cumulative Percentage,of Inventory Value,A,B,C,ABC Method of Inventory Contro,存货,ABC,分类管理,所谓,ABC,分类管理就是按照一定的标准，将企业的存货划分为,A,、,B,、,C,三类，分别实行分品种重点管理、分类别一般控制和按总额灵活掌握的存货管理方法。,分类的标准主要有两个：一是金额标准，,二是品种数量标准。,其中金额标准是最基本的，品种数量标准仅作为参考。,A,类存货的特点是金额巨大，但品种数量较少；,B,类存货的金额一般，品种数量相对较多；,C,类存货品种数量繁多，但价值金额却很少。,存货ABC分类管理 所谓ABC分类管理就是按照一定的标,【,例,6,2】,滨江百货企业拥有,2 000,余种商品，其中：家用电器、高档皮货、家具、摩托车、大型健身器械等商品的品种数量并不很多，只有近,200,种，占所有品种数的比重不足,10%,，但价值额却相当大，占所有商品价值的,70%,多，企业管理当局把此类存货划归为,A,类，按品种重点管理；大众化的服装、鞋帽、床上用品、布匹、文具用具等商品品种数量比较多，有,400,多种，占,20%,多，但价值额相对,A,类商品要小得多，只占全部商品价值的,20%,，企业管理当局把此类存货划归为,B,类，按类别进行一般控制；至于各种小百货，如针线、钮扣、日常卫生用品等，品种数量非常多，达到近,1 500,种，占所有品种数的,70%,多，但所占金额却很小，不到全部商品价值的,10%,，于是管理当局把此