Step 1: Scenario---> Assume you are a financial manager of a firm that sells most of its product on credit and also buys much of its raw materials on credit.
Step 2: Answer questions from the above scenario to help answer these questions:^^^^
I. Explain the importance of your credit standards that you extend to your customers.
II. What are the options available to you to finance your inventory short-term?
III. What is the cost of forgoing a 2/10 net 30 trade discount to your firm?