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Assume that you have just started a new job as a credit manager for a Fortune 500 company.Using the IMPACT Cycle,explain the process.For each step in the cycle,provide examples and state the information/data you would need to make a credit worthiness decision.
Net Realizable Value
An estimated selling price in the ordinary course of business minus reasonably predictable costs of completion, disposal, and transportation.
Selling Price
The amount of money charged for a product or service, which may include a markup for profit over the cost of production.
Inventory Item
An article or product that is stored and available for sale or use by a business.
Net Income
A company's remaining earnings once total revenue has been reduced by all expenses, taxes, and costs.
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