Please answer all questions and show all calculations.

Making changes to a firm's credit policy involves trade - offs. Assuming that all other factors remain constant, which of the following are outcomes expected to result from an increase in a firm's cash discount? Check all that apply. An increase in the firm's credit sales, a speeding up of customer payments, and a reduction in the firm's receivables investment An increase in the creditworthiness of the firm's customers An increase in the firm's bad - debt expenses An increase in the cost of the discounts given Consider the case of Virginia Hydroponics Company: Virginia Hydroponics Company (VHC), a wholesaler of seeds and plant nursery products, currently sells on terms of net 45 to its customers but is experiencing an average collection period (ACP) of 105 days. In an effort to reduce this delay, VHC's management is considering implementing its first cash discount. The revised credit terms, 4/25 net 45, are expected to reduce its ACP to 75 days. VHC expects 12% of its customers to take the discount, but it does not expect its inventory level to change as a result of the policy change. VHC has annual sales of exist6,000,000 and incurs variable costs of 65%. VHC wants to earn a pretax return of 12% on its receivables investment. Given this data, answer the following questions, and round all final dollar amounts to the nearest dollar. A. VHC's average receivables balance is expected to exhibit an incremental change of ___. B. VHC should expect to generate ____ in additional earnings as a result of the reduction in its receivables investment. C. VHC will sacrifice ___ in cash discounts. D. VHC should expect to see a net change of_ ___ in its pretax earnings. E. The company ___ make the change to its credit policy