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    tt38's Avatar
    tt38 Posts: 5, Reputation: 1
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    #1

    Jun 2, 2008, 08:38 PM
    Cerdit Analysis
    As treasurer of the Universal Bed Corporation, Aristotle Procrustus is worried about his bad debt ratio, which is currently running at 6%. He believes that imposing a more stringent credit policy might reduce sales by 5% and reduce the bad debt ratio to 4%. If the cost of goods sold is 80% of the selling price, should Mr. Procrustus adopt a more stringent credit policy? Calculate and explain
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jun 3, 2008, 07:56 PM
    I've posted our guidelines for submitting homework problems to you before. Please read it and follow it this time.

    https://www.askmehelpdesk.com/financ...-b-u-font.html

    Please stop just posting a homework problem and not showing us any attempts you've made to do your own work. If you do, I'm just going to keep posting the guidelines or ignore you.
    tt38's Avatar
    tt38 Posts: 5, Reputation: 1
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    #3

    Jun 3, 2008, 10:26 PM
    Quote Originally Posted by tt38
    As treasurer of the Universal Bed Corporation, Aristotle Procrustus is worried about his bad debt ratio, which is currently running at 6%. He believes that imposing a more stringent credit policy might reduce sales by 5% and reduce the bad debt ratio to 4%. If the cost of goods sold is 80% of the selling price, should Mr. Procrustus adopt a more stringent credit policy? Calculate and explain
    I figured it out!
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