What steps did General Electric take to free up cash

Reference no: EM131829017

Question: The August 31, 2009, issue of the Wall Street Journal includes an article by Serena Ng and Cari Tuna entitled "Big Firms Are Quick to Collect, Slow to Pay."

Instructions: Read the article and answer the following questions.

(a) How many days did InBev tell its suppliers that it was going to take to pay? How many days did it take previously?

(b) What steps did General Electric take to free up cash? How much cash did it free up?

(c) On average, how many days did companies with more than $5 billion take to pay suppliers, and how many days did they take to collect from their customers? How did this compare to companies with less than $500 million in sales?

(d) Are there any risks involved with being too tough in negotiating delayed payment terms with suppliers?

Reference no: EM131829017

Questions Cloud

Evaluate the credit risk of Scotts concentrated receivables : Suppose the information below is from the 2017 financial statements and accompanying notes of The Scotts Company, a major manufacturer of lawn-care products.

What are some of the benefits of factoring : If a company factors its receivables, what percentage of the value of the receivables can it expect to receive from the factor in the form of cash.

Regarding the old prudent man rule is most accurate : Which of the following statements regarding the old Prudent Man Rule is most accurate?

Mid-sized energy firm : Wally Manaugh, CFA, has recently been working on a research report covering BriteCo, a mid-sized energy firm.

What steps did General Electric take to free up cash : The August 31, 2009, issue of the Wall Street Journal includes an article by Serena Ng and Cari Tuna entitled "Big Firms Are Quick to Collect, Slow to Pay."

Discuss both the financial and nonfinancial factors : Emilio and René Santos own Club Fandango. From its inception, Club Fandango has sold merchandise on either a cash or credit basis.

Write steps to improve the company ability to pay bills : Chien Corporation is a recently formed business selling the "World's Best Doormat." The corporation is selling doormats faster than Chien can make them.

How much is in the account after the final payment : If the account earns 21% per period, how much is in the account after the final payment?

Determining the Mendez Corporation growth rate : Should the controller be concerned with Mendez Corporation's growth rate in estimating the allowance? Explain your answer.

User Account

All Pages