Shelia works in the Accounting department of Snap-On Tool In…
Shelia works in the Accounting department of Snap-On Tool Inc. Many of Snap-On Tool’s customers are large construction contractors, that purchase large amounts of tools at a time to complete major projects. Shelia has noticed that many of these customers have purchased very large tool orders on 90 day payment plans, so the Accounts Receivable balance for Snap-On is quite substantial. What risk does this Account Receivables balance pose to Snap-On Tools?