A company with annual sales of $22,000,000 is considering changing its payment terms from net 40 to net 30 to encourage
A company with annual sales of $22,000,000 is considering changing its payment terms from net 40 to net 30 to encourage customers to pay more promptly. The company
Part A: Calculate the incremental cash flows from accepting this proposal, and organize your cash flows into a cash flow spreadsheet.
Part B: Calculate the proposal's
Part C: Should the company shorten its payment terms?
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