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November 14, 2021

Evaluate different alternatives available to SRI: 3a. Continue doing business with Macdonald -What points should SRI stres

Questions to be answered:

3. Evaluate different alternatives available to SRI:

3a. Continue doing business with Macdonald

-What points should SRI stress to Macdonald’s management in order to

keep doing business in the future (hint: focus on ‘average collection

period, avg. age of inventory, average payable period, cost reductions

etc.)? How can SRI present some convincing arguments to Macdonald

to do business differently and to look after SRI’s interests?

-Show some simple calculation explaining the benefits of average

collection period reduction, the average age of inventory reduction (for

Macdonald).

In light of all alternatives, what action would you take with respect to Macdonald

Stationery and Office Supplies Limited account and the distribution of SRI

products in Atlantic Canada?

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