Team B_Working Capital Activity_Dec 09 -graded paper

Team B_Working Capital Activity_Dec 09 -graded paper -...

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Working Capital 1 Working Capital Management Activity University of Phoenix Sadaf Asghar, Ryan Crooks, Joseph Martinez, Fausto David Trejo and Anthony Thorton FIN/370: Business Finance Nikita G. Silver December 13, 2009
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Working Capital 2 Working Capital Management Activity In today’s economic climate, companies are facing unprecedented trends in business cycles. This has caused the need to gather information feverishly to create and sustain a competitive advantage in an unpredicted market. Uncertain economic times have forced the greatest financial minds to rethink the next step to increasing shareholder equity and restoring consumer confidence. Financial decisions made today must create cash flow and emergency capital resources for future fiscal pitfalls. The Bandwagonesque Corporation is currently analyzing if it will make sound business sense to change their current credit policy and extend their current credit terms from net 60 to net 90 days for all customers. This paper will give a brief background of the credit collection industry, provide a marginal analysis on the Bandwagonesque Corporation, compute an incremental analysis change, and share the most fiscally sound method for The Bandwagonesque Corporation to follow to maximize company revenues. Excellent!! Credit Collection Industry When firms begin to embark on the journey of business ownership, the business plan must include the best and worst case revenue collection practices to ensure that cash is managed efficiently. Product, service and technology-based firms who sell to clients outside of the corporate walls must have contingency plans for various scenarios that could hinder the fiscal growth of the company. Debt collection principles fall under The Fair Debt Collection Practices Act enacted in 1977 and need to be updated to reflect a changed business climate. According to
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Team B_Working Capital Activity_Dec 09 -graded paper -...

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