Discuss the Debate Over Legalization and Decriminalization of Prostitution

question 47

Essay

Discuss the debate over legalization and decriminalization of prostitution.

Understand the calculation of average accounts receivable balance in relation to sales and credit terms.

Assess the financial impact of granting credit to new customers and the NPV of such decisions.

Understand how the operating cycle and inventory period affect a firm's accounts receivable and inventory management.

Apply the one-shot and accounts receivable approach to evaluate the net present value of switching credit policies.