Thus
Pay lag = terms lag + due lag
State how you would expect the following events to affect each type of lag:
a. The company imposes a service charge on late payers.
b. A recession causes customers to be short of cash.
c. The company changes its terms from net 10 to net 20.

Quote:

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Originally Posted by kmartina

Thus
Pay lag = terms lag + due lag
State how you would expect the following events to affect each type of lag:
a. The company imposes a service charge on late payers.
b. A recession causes customers to be short of cash.
c. The company changes its terms from net 10 to net 20.

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