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Collection and purchase schedules allow a firm to track monthly cash flows. The collections and purcase schedules measure the speed at which receivables are collected an…d purchases are paid. To the extent collections do not cover purchasing costs and other financial requirements, the firm must look to borrowing to cover the deficit.
Explain how the collections and purchases schedules are related to the borrowing needs of the corporation?
The collections and purchase schedules measure the speed at which receivables are collected and purchases are paid. To the extent collections do not cover purchasing costs and… other financial requirements, the firm must look to borrowing to cover the deficit.
Is your agency required to assess your creditworthiness if you are a first time travel charge card applicant?
It's not a requirement - but it is common practice for a company to ascertain whether a new applicant is capable of operating a credit account responsibly.
They sell savings bonds of cash, and collect interest from the sells, therefore making a profit.
"The Five Cs and an IR of Credit." These guidelines are as follows: Character. This re-fers to the borrower's integrity and willingness to repay the financial obligation…. Does the borrower have a bad credit history? Has the borrower declared bankruptcy in the past? Has the borrower had a failed enterprise in the past? Has the borrower failed to meet family obligations? A "yes" answer to any of these questions could place the borrower's character in doubt. Capacity. This addresses the borrower's cash flow and ability to repay the debt from ongoing business operations. Unforeseen business difficulties will always arise. Accordingly, the use of the borrowed funds must generate sufficient funds during the period of the loan to cover these contingencies, and still have a generous amount left over in order to service any remaining debts. Capital. This is the borrower's financial net worth. A significantly positive net worth has the potential to offset insufficient cash flows, because financiers perceive the borrower still has more than adequate means to repay the loan. Collateral. This refers to any property owned by the borrower that can be pledged for security. If the property has been previously pledged against another loan, financiers would probably not consider it available to be pledged again until the previous loan has been paid off. Conditions. These refer to economic, industrial and company-specific prospects and events that may occur during the period of the loan that could have a significant effect on your company. These might include rising raw material prices, an employee strike, increasing interest rates, etc. Inventories. In addition, bankers will look at the company's inventories. Don't assume a large inventory represents collateral that can be readily pledged against a loan. Bankers realize that if a company defaults on a loan, the financiers would be lucky to recoup five cents on the dollar from the pledged inventory. Instead, bankers will look at how rapidly you rotate your inventory, and the faster the better. If you have enough inventory on hand for the next year, you are negatively impacting cash flow. Such a condition probably indicates people are not buying your product, another reason for worry. However, if you are "turning" your inventories every month, your financiers should be very happy. Receivables. How well are you doing at collecting your debts? If you give your customers 30-day terms, are they paying on time? If your receivables are averaging 60 days, it will cost you both money and the confidence of your bankers.
When corporations borrow money they usually borrow from investors. When they do this, they are selling pieces of their business.
Assess Strayhorn's Communication effectiveness of Eastern International Food Service Corporation?
It is called a proxy
It is called a corporate bond.
The Prime rate is the lending rate at which the largest and most creditworthy corporations borrow money from banks?
"A procedure which can be used to assess the moral health of a corporation is the...external audit." The above answer is serious. No interviews of the staff, management or dir…ectors, no observation of the practices, no study of the policies will tell as much about the morality of the company as it's finances will.
Capacity. The present and future ability to meet your financial obligations. Some of the areas examined would be your work history and the amount of debtthat you already owe.C…apital. Savings and other assets that could be used as Collateral for loans. Even if you are not required to post collateral, many creditors express a preference that you have assets other than income that could be used to repay a loan.Character. This boils down to trustworthiness, promptness in paying your existing bills and other debts, and your credit history.
1. Australia 2. Austria 3. Canada 4. Denmark 5. Finland 6. France 7. Germany 8. Isle of Man 9. Luxembourg 10. Netherlands 11. New Zealand 12. Norway 13. Singapore… 14. Sweden 15. Switzerland 16. United Kingdom 17. USA
When I need something that I won't need often enough to warrant buying it, or when I cannot afford to buy something myself, or when I need something urgently and borrowing is …the quickest way to get it.
Credit worthiness means if one is employed and has sufficient income or money to be able to pay back the money taken as loan