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4$) PLEASE ANSWER A-E Suppose your firm receives a $5.03 million order on the last day of the year. You fill the order with $2.21
4$) PLEASE ANSWER A-E
Suppose your firm receives a $5.03 million order on the last day of the year. You fill the order with $2.21 million worth of inventory. The customer picks up the entire order the same day and pays $1.24 million up front in cash; you also issue a bill for the customer to pay the remaining balance of $3.79 million within 40 days. Suppose your firm's tax rate is 0% (i.e., ignore taxes). Determine the consequences of this transaction for each of the following: a. Revenues d. Inventory b. Earnings e. Cash c. Receivables .. a. Revenues Revenues will by $ million. (Select from the drop-down menu and round to two decimal places.) increase decreaseStep by Step Solution
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