Assistance needed to make the below statement more impactful and concise.

The question was- Offer customers a cash discount of 3% if payment is made in the month of sale. It is anticipated that this would increase the percentage of customers paying in the month of sale to 50%. Fantastic Ltd would collect 30% of credit sales after a month of sale, 30% in the following month and 35% in three months after the month of sale and 5% is uncollectible (2 marks)

Proposed answer-

In terms of the first policy change, at initial observation, it may seem to be a beneficial one, as thediscount of 3% for payments made in the month of sale would incentivise customers to pay cash, offering the discount, credit payments decrease from 70% to 50% of total sales, thereforthe Non-Recoverable AR is reduced from 5% of 70% to 5% of 50%. The difference between the current and the new budget with the implemented change of the total cash collected would be $132,700, which initially appearsto be a favourable outcome in improving the performance of cash flow. However, by establishing this discount, profits will further decrease for Fantastic Ltd as the price is already lower than the Cost of Goods Sold (COGS), resulting in larger losses if this change was to be implemented. Hence, if the company does decide to make this change, it should only be done after a price increase and ensure that the discounted rate is higher than COGS.