Question: Suppose Global Manufacturing is planning to change its credit policies
Suppose Global Manufacturing is planning to change its credit policies next year. It anticipates that 10 percent of each month’s sales will be for cash; two-thirds of each month’s receivables will be collected in the following month, and one-third will be collected two months following their sale. Assuming the Global’s sales forecast in Table 15.4 remains the same and the expected cash outflows in Table 15.5 remain the same, determine Global’s revised cash budget.
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