Question: elaborate 1 sentence: The answer is YES. Based from the analysis of the findings in parts B and D, offering cash discount can be justified
elaborate 1 sentence: The answer is YES. Based from the analysis of the findings in parts B and D, offering cash discount can be justified financially. Mainly because it would result to reduced average collection period by 30 days which result a lesser days of cash conversion cycle. This means that it is 39 days faster than the assumed constant rate. Moreover, the average investment would decrease $2,630,136.99. It would save the company of $394,520.55 in investment in the AR or it will give the company an annual savings
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
