17 Jan Jill Land, president of Loon Co., is happy to repo
Jill Land, president of Loon Co., is happy to report to the company’s stockholders that the company increased its cash position by 20% from last year. Its average collection period decreased by 12 days. Jill knows some customers are unhappy about the new credit terms but believes that you cannot please everyone; that’s part of business. Do you think Loon Co. is on the right track? One shareholder is quite upset to learn that the company is holding so much cash. Do you agree with the company’s belief that increasing the cash position by 20% is sound? You make the call. Write down your recommendation to Jill.
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