Suppose Cranston institutes a policy of granting a 1% discount for payment within fifteen days with the full amount due in forty-five days (1/15, net 45). Half the customers take the discount; the other half take an average of sixty days to pay. a. What is the length of Cranstons collection cycle under this new policy? b. If this policy had been in effect during 2014, how much would it have cost Cranston in dollars? c. If this policy had been in effect during 2014, by how many days would Cranston have shortened the cash conversion cycle?

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Absolutely lets analyze Cranstons new credit policy and its impact on the collection cycle and cash conversion cycle a Collection Cycle Length The col... View the full answer