Question #2 The ABC Company produced the following sales. Determine the monthly cash in-flows for January thru July 2018 using the terms of sale: (10 points) Cash Net 30 60% Net 60 30% Net 90 10% Jan-18 $150,000 Feb-18 $170,000 Mar-18 Apr-18 $225,000 Sales $200,000 2 BONUS points: You want to incentivize your customers to pay cash. You do so by giving customers who pay cash a 5% discount on that month's cash payment (discount applied to cash payment only, not the entire sale). How much does that discount cost you in lost revenue, in total, if payment behaviors do not change (meaning the payment schedule you built above does not change), but take advantage of the cash payment discount? a) b) As a result of the discount, all customers take advantage of the discount, and pay all cash, resulting in the following terms: Cash Net 30 Net 60 Net 90 100% 090 0% How much does the discount now cost you in lost revenue? c) Give two reasons why this discount is a good idea and considered successful looking at the behaviors of part b)? d) Give two reasons why this discount is a bad idea