The management of Posad Cotton Company made the decision that follow. Indicate whether each decision pertains primarily to

(a) Cash flow managements,

(b) Choice of inventory system, or

(c) Foreign transactions.

1. Decided to reduce the credit terms offered to customers from 30 days to 20 days to speed up collection of account.

2. Decided that the benefits of keeping track of each item of inventory as it is bought and sold would exceed the costs of such a system.

3. Decided to purchase good made by a Chinese supplier.

4. Decided to switch to a new cleaning service that will provide the same service at a lower cost with payment due in 30 days instead of 20 days.