Please respond case A and case B in 750 words. Provide references in APA format. Case A: Your firm has experienced continued sales growth that has been in part due to a more relaxed credit policy. All...

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Please respond case A and case B in 750 words. Provide references in APA format. Case A: Your firm has experienced continued sales growth that has been in part due to a more relaxed credit policy. All sales are on account. At the same time that sales have continued to grow, there has been a significant increase in uncollectible accounts.  Two years ago, you led a corporate team that evaluated the benefits of outsourcing your credit sales policy to VISA. Such a move would cost the firm 4% of every sales dollar, but would also reduce administrative and collection process expenditures by .5 % of every sales dollar. Needless to say, bad debt experience would drop to 0.  The corporate team has convened, and you have been provided income statements (including bad debt performance), as well as accounts receivable aging performance for the past five years. You have a number of options to consider, which include (but are not limited to) accepting current collections performance, revising the firm’s credit policy (see note on industry sales performance when a firm tightens its credit policy), implementing a tougher collection policy (see note on the impact an aggressive collection policy has on sales and customer retention), and a shift to an outside sales/collections process (VISA).  What does your team recommend and why?  Case B: You are the Chief Financial Officer for the Williams Department Store Chain. Williams is a family-owned department store chain that has always prided itself on having a wide variety of goods on hand for its customers. Mr. Williams, the chain’s founder, takes great pride in having a high level of inventory. He brags that he always has what the customers need as evidenced by the merchandise inventory “on-the-books” just waiting for a customer to buy.  Your analysis of the firm’s sales and merchandise inventory relationship reveals the following: a)      annual sales are $100 million b)      average annual inventory is $ 20 million c)      the cost of carrying inventory is 25% of every dollar of inventory d)      30% of the chain’s inventory supports 4% of totals sales e)      the cost of goods sold (including inventory carrying cost) is 50% of every sales dollar f)       net income after tax is 5% of every sales dollar Prepare an executive summary for Mr. Williams addressing the adjustments that should be made to the Chain’s current merchandise inventory policy. “Old Man” Williams has a good business sense and takes great pride in the Chain’s bottom line.