- o Mini Case Summer 2021 - Notepad File Edit Format View Help Foundation of Financial Black, liirt, Shart, and Perretta: Tenth Canadian tatto Warth at the Course Rent - pts walallale) Analyse races and retary polley Student Name: Student To I La Distributing Company sells all places to handane stars throughout the west. 3. on, the president of the company, Is thinking but changing the credit policies attered by the in to attract customers away from competitors. The current policy calls for a 1/A, net , and the The policy would call for a 1/1, net 5. Currently, percent of Layer customers are taking the discount, and it is anticipated that the number would you to es percent with the new discount policy. "It is further anticipated that mul sales would increase from a level of $12,0 ta , mult - of the change in the cash dolly. The increased sales would als stect the inventary Level carried by Logan. The were inventary carried by Las head on a determination of mo. Aune unit sales of fans and heaters will increase from "15,6 to 22,5 units. The andering cost for each ander is 20 and the carrying cost per unit is $1.52 these values will not change with the discount). Each unit in mentary has wragecast at $12... Cart of ande sold is equal to a percent of net sales, geral and administrative spean equal to 15 percent of net sales, and interest payments at 14 percent will be necessary only far the increase in the sale wiary. Taces will equal parant of war-tax income a. Compute the accounts receivable balance betare and atter the change in the cash discount policy. Use the net sales Tatal sales - Cath discounts) to determine the wrage daily sales and the accounts relle Balance 1. Determine tore and atter the change in cash discount policy. Translate this interage mentary (in units and dollars) are and atter the change in the cash discount palley. c. Complete the income statement betare and atter the palley change d. Should the new cash dicant policy be utilizad? Eplain your position. Saluti Warth 1 of the Course Recent - pts wallable) Instructions Use the key facts ble and internation from the planta complete the templates bols. You may attach your supporting work which will be considered tar partial arts. Othere the paints will be based on right or wrong. . Kay Tacts Batare Atter Sales Level Anticipated sales lave 15, Dict 15 w tai dient Ordering cost per ander $299.00 Carrying cat per un $1.5 Romant $12.00 A. Compute the accounts receivable balance before and after the change in the cash discount policy. Use the net sales [Tatal sales - Cash discounts) ta determine the weige datly sales and the accounts rebels. Beton Policy Our Norage collection pred des Ipt Merge dallysales int Accounts receivable UNUT ds Int After Palley Ow Rurage collection Murally sales Asunt cele int ALUE 1. Determine nog betare and after the change in cash discount policy. Translate this intawe Intary in units and dollar) betare and atter the change in the cash discount pality. Batane Atar - planes Onts Mentary UNLUET PULUET units Aurage trentary S Onts c. Complete the income statement betare and atter the party change. Athar