Question: They show a 6 % increase in each area, but you have doubts about their accuracy. While you think that 6 % sales

They show a 6\% increase in each area, but you have doubts about their accuracy. While you think that 6\% sales growth seems reasonable, you are aware that additional collections staff have just been hired but have not been included within projected expenses. Your view is that operating expenses will increase by \(10\%\). However, you believe that the additional staff will decrease receivable days from 42.2 days to 41.0 days. What will the impact of your changes in these two variables be on the business's projected cash flow?Cash flow will decline by approximately \(\$ 56,000\).
Cash flow will increase by approximately \(\$ 28,000\).
Cash flow will decline by approximately \(\$ 28,000\).
They show a 6 \ % increase in each area, but you

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