1) What would happen to the company's need for external financing if sales varied plus or minus 10%, 20%, and 30% from the forecasted level? Prepare a sensitivity analysis. 2) What would happen to the company's financing needs if customers began to pay 15% in the month of sale, 60% the month after, and the rest in 2 months? Assume that at least 3% bad debts remain.

Answer rating: 100% (QA)

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