FM-I

Cool Aid Case Analysis

STUDY GROUP 1E:
KHOT SOURABH DIPAK MAHAKPREET SINGH BHATIA
MD BILAL SHAKIR NAVAN ANAND
NIDHI CHAUHAN NIHAL JOHN
NIRVANA MOKTAN
Case in brief
1. Offering Cash Discounts

Margin costs and benefits of offering a cash disco

Recommendation
2. Interest Rate Declining in Future

If interest rates decline in future years:

Recommendation:
3. Credit Policy Changes

Peculiar features:
Implications of policy on companys profitability and financing
requirements:
4. Accounts Receivable

Possible reasons for the slowdown in accounts receivable collections:

5. Credit Policy

Primary elements of a firms credit policy:

Is CoolAid Company focusing on the appropriate element of its credit

policy revision?