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please help me with these three questions thank you! Use the following information to answer questions 19-6 through 19-9. A rm currently offers credit terms

please help me with these three questions thank you!

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Use the following information to answer questions 19-6 through 19-9. A rm currently offers credit terms of 21' 10, nf30. You want to change the credit policy to 2f10, nf35. As a result of this change, sales are expected to rise by 15%; bad debts will rise from 1% to 3% of sales. All sales are credit sales. Currently 30% of customers pay off their accounts in 10 days with 69% paying in 30 days and 1% paying in 100 days. The change will not affect the 30% paying early but is expected to increase the 1% late payers to 3%. Assume: 365 day year 8% cost of capital Operating expenses change as a percentage of sales Taxes are at the 40% rate Interest expense will drop by $1,000 Income Statement before credit change Sales $200,000 COGS 120,000 Gross Prot 80,000 Bad debts expense 2,000 Operating expenses 40,000 EBIT 38,000 Interest expense 2,000 EBT 36,000 Taxes 14,400 Net Prot '5 21,600 Balance Sheet Before change Cash $30,000 Accounts Receivable 13,534 Inventory 25,600 J 19-6. Calculate the change between the old and new accounts receivable collection period: a. decreases by 4.75 days b. increases by 1.4 days c. decreases by 2 days (1. increases by 4.75 days 19-? After the credit changes, the new net income is projected to be a. $28,800 b. $26,000 c. $22,860 d. $26,460 19-8. What is the amount of the new accounts receivable after the credit change? a. $16,44? b. $15,564 c. $16,000 d. $18,954

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