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Questions on establishing credit and inventory policies

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Reference no: EM132908343

Answer the following questions on establishing credit and inventory policies 

  1. What are some of the factors that determine the length of the credit period?
  2. Why is the length of the buyer's operating cycle often considered an upper bound on the length of the credit period?
  3. How would a Just in Time Inventory system effect a company's DIO, Inventory Turnover, and ROE (hint think of DuPont Analysis)? 

 

Reference no: EM132908343

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