Question #2 The ABC Company produced the following sales. Determine the monthly cash in-flows for January thru June 2019 using the following terms of sale: (6 points) Cash 70% Net 30 20% Net 60 10% Jan-19 $150,000 Feb-19 $200,000 Mar-19 $275,000 Apr-19 $300,000 Sales 4 points: You want to incentivize your customers to pay cash. You do so by giving customers who pay cash a 2% discount on that month's cash payment (discount applied to cash payment portion only, not the entire sale). a) Scenariol: How much does that discount cost you in lost revenue, in total, if payment behaviors do not change? b) Scenario2: As a result of the discount, all customers take advantage of the discount, and pay all cash. For example, the following terms are realized: Cash 100% Net 300% Net 60 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 in the case of scenario2? d) Give one reason why this discount is a bad idea? Question #2 The ABC Company produced the following sales. Determine the monthly cash in-flows for January thru June 2019 using the following terms of sale: (6 points) Cash 70% Net 30 20% Net 60 10% Jan-19 $150,000 Feb-19 $200,000 Mar-19 $275,000 Apr-19 $300,000 Sales 4 points: You want to incentivize your customers to pay cash. You do so by giving customers who pay cash a 2% discount on that month's cash payment (discount applied to cash payment portion only, not the entire sale). a) Scenariol: How much does that discount cost you in lost revenue, in total, if payment behaviors do not change? b) Scenario2: As a result of the discount, all customers take advantage of the discount, and pay all cash. For example, the following terms are realized: Cash 100% Net 300% Net 60 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 in the case of scenario2? d) Give one reason why this discount is a bad idea