Can you argue that finance is completely without fault

Assignment Help Corporate Finance
Reference no: EM131475827

Discussin Problem

You're the CFO of the Wachusett Window Company, which sells windows to residential builders. The firm's customers tend to be small, thinly capitalized construction companies that are frequently short of cash. Over the past year, there's been a slump in the housing industry and Wachusett's sales have slowed. Several months ago the marketing department initiated a program to attract new customers to counteract the downward sales trend.

The VP of marketing and the president agreed that the firm would have to deal with even smaller, newer builders if it was going to keep sales up. At the time the president overruled your concerns about the credit quality of such customers. He personally approved a number of accounts brought in by the sales department that ordinarily wouldn't have qualified for credit. More recently receivables have gone up substantially, and collection efforts have been less successful than usual.

Collectors have asked for help from sales representatives in chasing down delinquent customers, but the VP of marketing says they don't have time because ‘‘reps have to be out on the street selling.'' The president has suddenly become concerned about the receivables increase, and has demanded to know why finance has let it happen.

Prepare a memo explaining the processes behind the creation and management of receivables and explain what's behind the increase. Tactfully explain why the blame should not be placed solely on the finance department. Can you argue that finance is completely without fault in this matter?

Reference no: EM131475827

Questions Cloud

Reflect on a patient who presented with cardiovascular : Describe your experience in assessing and managing the patient and his or her family. Include details of your "aha" moment in identifying the patient's disorder
Compute one key driver of health care cost escalation : Compute one key driver of health care cost escalation. Indicate one strategy health care managers can implement to reduce costs in the future.
Write a assembly language instruction sequence : Write a PIC18F assembly language instruction sequence to initialize Timer0 as an 8-bit timer to provide a time delay with a count of 100. Assume 4 MHz internal.
The owners of a corporation are the shareholders : The owners of a corporation are the shareholders.
Can you argue that finance is completely without fault : Tactfully explain why the blame should not be placed solely on the finance department. Can you argue that finance is completely without fault in this matter?
Legal actions or cases that involved managed care : Discuss how these actions or cases impacted access to care or influenced the operations of managed care organizations.
What social-civil institutions should be monitoring health : State your stance on required reporting to international agencies or committees. What social or civil institutions should be monitoring health?
Define the pre-scalar and post-scalar values : Write a PIC18F assembly language program to turn an LED ON connected at bit 0 of PORTC when the TMR2 register reaches a value of 200. Assume a 4 MHz crystal.
Conduct an interview with an appropriate risk management : Risk management strategies used in the organization's infection control program, along with specific examples.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Describe the ethical and social responsibility components

Identify current ratios, and compare the ratios to industry averages and identify debt-to-equity ratios, and compare them to industry standards. Use the ratios to calculate the company's cost of capital.

  Gearing tobi industries wishes to undertake a project that

gearing tobi industries wishes to undertake a project that will cost r2 500 000. the project has already been evaluated

  1a firm has an asset beta of 1 and a company cost of

1.a firm has an asset beta of 1 and a company cost of capital of 15. a new project comes along with a beta of .2 and

  The four imperatives of aligning sales and strategyfor your

the four imperatives of aligning sales and strategyfor your portfolio project you will research an organization of your

  Determine what discount rate vestor should use

Determine what discount rate (WACC) Vestor should use to evaluate the warehousing facility project. Assess whether Vestor should make the warehouse investment.

  Determine the aspects of the budgeting process

Determine the aspects of the budgeting process that are in need of improvement. Compute contribution margin per unit and contribution margin ratio. Determine the breakeven quantity and the breakeven revenue accurately.

  Prepare a profit variance analysis for sell inc

Sell, Inc., is a marketing consulting firm that earns revenues by billing clients for hours worked. Prepare a profit variance analysis for Sell,  Inc.

  Computation of profit margin of college at given strength

computation of profit margin of college at given strength of students.houghton college is planning to begin a new

  Find effective annual interest rate

The beta of Microsoft stock is 1.2, where risk free rate of return is 4%. Suppose that the expected return on the market is 16%.

  What is the value of rolens prefferred stock

What is the value of Rolen's prefferred stock and suppose interest rate levels rise to the point where the prefrred stock now yields 12% What would be the value of Rolen's preferred stock?

  What was the firms return on sales

You find the firm had return on investment (ROI) of 15 percent and asset turnover of 0.5. What was the firm's return on sales?

  Find the present value of interest tax shields

Suppose that MM's theory holds with taxes. There is no growth, & $40 of debt is expected to be permanent. Suppose a 40% corporate tax rate.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd