Management of trade receivables and a practice about Z score model

Todays many companies carry out some of their sales within a specified length of time for some reasons, competition is to be first of them. Trade credits which is result in for the sales of goods and services with credit sales, holds considerable position within the assets of companies. The companies have to manage their assets effectively, in order to reach their goals such as yielding profit and liquidity. The companies must provide for effectiveness in management of receivable by tracking of that phases: Creating credit and collection policy, analizing credit demands in accordance with credit sales demand, conducting credit sales within the limit specified and checking of receivables. The aim of this study is to analyse credit sales decisions for manufacturing industry that is selected for 2001-2002-2003 years by applying Z Point Model, that is one of the analyses teqniques used in deciding to make credit sales or not and that is developed by Edward I Altman. According to result of this study, Z point that express the occurence possibility of financial strenght, shows that there is an uncertainty concerning credit sales. Likewise, manufacturing industry made loss in the year 2001 in which country's economy showed no progress at all and several of firms had to stop producting activities and most of them lay workers off. İn spite of that, both industry having a tendancy towards getting better in further years together with economy and industry registering progress, when the ratios in the model are concerned, is considered as affirmative data in credit sales decision process, making credit sales to manufacturing industry is found acceptable. X