Answer the following questions using the sales discount sliders (provided below) and income statement information.

Financial Statement Impact Gifford Sales does not presently offer a sales discount. Gifford is considering a discount policy in order to accelerate customer collections. In order to determine the impact of the discount on selected monthly income statement items, various discount terms are assumed. Gifford assumes total sales of $100,000 subject to the discount with an associated cost of merchandise sold of $55,000 for January, 2014. Gifford further assumes that the percent of sales that will take the discount, shown on the row just below the slider, will increase as the discount increases, as follows