verbusiness Corporation has been reviewing its credit policies. The credit standard it has been applying have resulted in an annual credit sales of $5,000,000.00. Its average collection period is 30 days with a bad debts/loss ratio of 1%.  Everbusiness Corporation is considering a reduction in its credit standards. As a result, it expects incremental credit sales of $400,000.00 of which the average collection period would be 60 days, in which the bad BCR to sales for Everbusiness Corporation is 70%. The required investment on receivables is 15%. Evaluate the relaxation in credit standards that Everbusiness Corporation is considering. Use 0.04% per year/365 days. Provide detailed explanation and solutions.

Q: amount borrowed plus a commitment fee of Rs.20, 000. Both alternatives also required a 20%…

A: Please see below attached file

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A: Please see the answer below ?? Net income:     Under current policy $240,801…

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A: = Sales*(selling price- cost price) = 2,150*(53-31)= 47,300

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A: Cost of line of credit = committed cost + interest cost.

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A: Accounts receivables are the firm's debtor to which the firm gives its selling products on credit.…

Q: Solve this

A:

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Q: Need Correct Answer

A:

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A:

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Short-term Financing

Short-term financing occurs when a company finds an external funding source to run the business for a short period of time that takes less than a year to pay off. Working capital financing is another term for short-term financing. When a company's cash flow from operations is uneven, short-term financing is used to generate cash flow and cover operating expenses. Short-term finance is typically used by businesses to fund inventory, accounts receivable, and loans.