Credit Policy Evaluation Lealos, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. Based on the following information, determine if Lealos should proceed or not. Describe the buildup of receivables in this case. The required return is .95 percent per month.

Current Policy New Policy Price per unit $720 $720 Cost per unit $495 $495 Unit sales per month 1,100 1,140