Answer to Question #14129 in Management for Neo

Question

Retail sales analysis (% of total sales)
2011: Cash is 83.8% 2012: 81.4%
2011: Credit is 16.2% 2012: 18.6%

What is the impact of the split on the company from an advantage and disadvantage perspective

Answer 1

Advantage perspective:
Company increased level of credit in 2012 year. Credit money can be used. Leverage effect will take place

Disadvantage perspective:
Increasing of credit level will lead to decreasing in level of autonomy.