I did this practice question earlier this semester and the red is what I got wrong. Could you please help me fix what is in red? I need this to study for my final. Please and thank you.

Can you please help me fix what is in red?

TFW LTE 1:03 PM O 78% please help! Logan Distributing Company of Atlanta sells fans and heaters to retail outlets Legal throughout the Southeast. Joe Logan, the president of the company, is thinking Compa about changing the firm's credit policy to attract customers away from competi-Red tors. The present policy calls for a 1/10, net 30 cash discount. The new policy invente would call for a 3/10, net 50 cash discount. Currently 30 percent of Logan custom- 1074 ers are taking the discount, and it is anticipated that this number would go up to 50 percent with the new discount policy. It is further anticipated that annual sales would increase from a level of S400,000 to $600,000 as a result of the change in the cash discount policy. The increased sales would also affect the inventory level. The average inventory carried by Logan is based on a determination of an EOQ. Assume sales of fans and heaters increase from 15,000 to 22.500 units. The ordering cost for each order is $200, and the carrying cost per unit is $1.50(these values will not change with the discount) The average inventory is based on EOQ/2. Each unit in inventory has an average cost of S12 Cost of goods sold is equal to 65 percent of net sales general and administrative expenses are 15 percent of net sales, and interest payments of 14 percent will only be Pert) Working Capital Management necessary for the increase in the accounts receivable and inventory balances. Tunes will be 40 percent of before-tax income. 4. Compute the accounts receivable balance before and after the change in the cash discount policy. Use the net sales (total sales minus cash discounts) to determine the average daily sales b. Determine the EOQ before and after the change in the cash discount policy Translate this into average inventory (in units and dollars) before and after the change in the cash discount policy cComplete the following income statement: Change Change Net sales Sales Casco Cost of goods sold Gross General and administrative Interest one in accounts recendo Incora Should the new cus desconocybe tied Brielly comment IN before 40000 100 met 18010 SO 30 general and report Interest an increase in secreciable and newy 118300 D New cash discount policy can be red sredin mm ventering the west the YOU MUST USE FORMULAS IN THE CELLS TO RECEIVE CREDIT Part 3 Working Capital Management necessary for the increase in the accounts receivable and inventory balances. Taxes will be 40 percent of before-tax income. a. Compute the accounts receivable balance before and after the change in the cash discount policy. Use the net sales (total sales minus cash discounts) to determine the average daily sales. b. Determine the EOQ before and after the change in the cash discount policy. Translate this into average inventory (in units and dollars) before and after the change in the cash discount policy. c. Complete the following income statement: Before Policy Change After Policy Change Net soles (Sales - Cash discounts) Cost of goods sold Gross profit General and administrative expense Operating profil Interest on increase in accounts receivable and inventory (143) Income before taxes Taxes Income after taxes d. Should the new cash discount policy be utilized? Brielly comment inventor Logan Distributing Company of Atlanta sells fans and heaters to retail outlets Logan throughout the Southeast. Joe Logan, the president of the company, is thinking Compar about changing the firm's credit policy to attract customers away from competi- (Receiv tors. The present policy calls for a 1/10, net 30 cash discount. The new policy would call for a 3/10, net 50 cash discount. Currently 30 percent of Logan custom- (L07-4 ers are taking the discount, and it is anticipated that this number would go up to 50 percent with the new discount policy. It is further anticipated that annual sales would increase from a level of $400,000 to $600,000 as a result of the change in the cash discount policy. The increased sales would also affect the inventory level. The average inventory carried by Logan is based on a determination of an EOQ. Assume sales of fans and heaters increase from 15.000 to 22.500 units. The ordering cost for each order is $200. and the carrying cost per unit is $1.50(these values will not change with the discount). The average inventory is based on EOQ/2. Each unit in inventory has an average cost of S12 Cost of goods sold is equal to 65 percent of net sales: general and administrative expenses are 15 percent of net sales: and interest payments of 14 percent will only be hefom 1300 30 40000 12000 1410 general and the expre 11 54 TAS D Newcash dicunt policy can be down incremental income even aerobing the month YOU MUST USE FORSLAS IN THE CELLS TO RECEIVE CREDIT TFW LTE 1:03 PM O 78% please help! Logan Distributing Company of Atlanta sells fans and heaters to retail outlets Legal throughout the Southeast. Joe Logan, the president of the company, is thinking Compa about changing the firm's credit policy to attract customers away from competi-Red tors. The present policy calls for a 1/10, net 30 cash discount. The new policy invente would call for a 3/10, net 50 cash discount. Currently 30 percent of Logan custom- 1074 ers are taking the discount, and it is anticipated that this number would go up to 50 percent with the new discount policy. It is further anticipated that annual sales would increase from a level of S400,000 to $600,000 as a result of the change in the cash discount policy. The increased sales would also affect the inventory level. The average inventory carried by Logan is based on a determination of an EOQ. Assume sales of fans and heaters increase from 15,000 to 22.500 units. The ordering cost for each order is $200, and the carrying cost per unit is $1.50(these values will not change with the discount) The average inventory is based on EOQ/2. Each unit in inventory has an average cost of S12 Cost of goods sold is equal to 65 percent of net sales general and administrative expenses are 15 percent of net sales, and interest payments of 14 percent will only be Pert) Working Capital Management necessary for the increase in the accounts receivable and inventory balances. Tunes will be 40 percent of before-tax income. 4. Compute the accounts receivable balance before and after the change in the cash discount policy. Use the net sales (total sales minus cash discounts) to determine the average daily sales b. Determine the EOQ before and after the change in the cash discount policy Translate this into average inventory (in units and dollars) before and after the change in the cash discount policy cComplete the following income statement: Change Change Net sales Sales Casco Cost of goods sold Gross General and administrative Interest one in accounts recendo Incora Should the new cus desconocybe tied Brielly comment IN before 40000 100 met 18010 SO 30 general and report Interest an increase in secreciable and newy 118300 D New cash discount policy can be red sredin mm ventering the west the YOU MUST USE FORMULAS IN THE CELLS TO RECEIVE CREDIT Part 3 Working Capital Management necessary for the increase in the accounts receivable and inventory balances. Taxes will be 40 percent of before-tax income. a. Compute the accounts receivable balance before and after the change in the cash discount policy. Use the net sales (total sales minus cash discounts) to determine the average daily sales. b. Determine the EOQ before and after the change in the cash discount policy. Translate this into average inventory (in units and dollars) before and after the change in the cash discount policy. c. Complete the following income statement: Before Policy Change After Policy Change Net soles (Sales - Cash discounts) Cost of goods sold Gross profit General and administrative expense Operating profil Interest on increase in accounts receivable and inventory (143) Income before taxes Taxes Income after taxes d. Should the new cash discount policy be utilized? Brielly comment inventor Logan Distributing Company of Atlanta sells fans and heaters to retail outlets Logan throughout the Southeast. Joe Logan, the president of the company, is thinking Compar about changing the firm's credit policy to attract customers away from competi- (Receiv tors. The present policy calls for a 1/10, net 30 cash discount. The new policy would call for a 3/10, net 50 cash discount. Currently 30 percent of Logan custom- (L07-4 ers are taking the discount, and it is anticipated that this number would go up to 50 percent with the new discount policy. It is further anticipated that annual sales would increase from a level of $400,000 to $600,000 as a result of the change in the cash discount policy. The increased sales would also affect the inventory level. The average inventory carried by Logan is based on a determination of an EOQ. Assume sales of fans and heaters increase from 15.000 to 22.500 units. The ordering cost for each order is $200. and the carrying cost per unit is $1.50(these values will not change with the discount). The average inventory is based on EOQ/2. Each unit in inventory has an average cost of S12 Cost of goods sold is equal to 65 percent of net sales: general and administrative expenses are 15 percent of net sales: and interest payments of 14 percent will only be hefom 1300 30 40000 12000 1410 general and the expre 11 54 TAS D Newcash dicunt policy can be down incremental income even aerobing the month YOU MUST USE FORSLAS IN THE CELLS TO RECEIVE CREDIT