Central Manufacturing

Summary You have advised me that that you ar c formerlyrned with regretful losses. A superficial analysis of your accounts receivable designated that a gigantic fraction were over 90 days past overdue. objet dart you sapidity certain that these accounts leave behind be self-contained eventually, the company has see problems in paying its bills. Analysis The speculative debt losses argon a ensue of the past due accounts receivable and can tho be rectified once the underlying problem with the charm of accounts receivable is resolved. The difficulty in paying bills is a result of the cash flow paucity which can similarly be resolved by location the underlying problem; the crop of battle of accounts receivable. There are several possibilities as to the cause of the underlying problem, and entirely a thorough investigation of each possibility allow for specify the cause and lead to the best practicable solution. It is also jussive mood to keep in mind your com panys key success factors when determine the contributing factors to ensure that nothing is overlooked. The following are possible contributing factors and methods that should be used to investigate them. 1. quotation Policy. If the government agency polity is too lax or if move are not being taken to check the consultation justice of potential clients, the company could be extending ascribe to regretful clients.

This perilous lending will obviously create potential assembly problems and could lead to an increase in bad debts as a result. A review of the current credit policy and go taken to evaluate the credit rating of cli ents will indicate whether improvements are ! needed in this area. 2. Sales. Incentives based on pith billings or number of new accounts could push gross gross sales staff to sell to clients who may be less than credit worthy. The sales staff also needs to be witting of the production process... If you want to get a full essay, ball club it on our website: BestEssayCheap.com

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