Liabilities and Equity(英文版)(ppt 44页)

Liabilities and Equity(英文版)内容提要：
Does D’Leon pay its suppliers on time?
Probably not.
A/P increased 260% over the past year, while sales increased by only 70%.
If this continues, suppliers may cut off D’Leon’s trade credit.
Does it appear that D’Leon’s sales price exceeds its cost per unit sold?
No, the negative NOPAT and decline in cash position shows that D’Leon is spending more on its operations than it is taking in.
Sales double as a result of the change in credit terms.
Short run:  Inventory and fixed assets é to meet increased sales.  A/R é , Cash ê.  Company may have to seek additional financing.
Long-run:  Collections increase and the company’s cash position would improve.

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