Question 3 (14 marks) Armstrong Inc. has annual credit sales of $2,275,000 with credit terms of 60 days and an average collection period of 75 days with no discount. To improve cash flow, the company is considering a change in collection policy by offering a 3% discount for payment in 30 days and estimate only 80% of customers will take advantage of the discount. Their new average collection period would be 40 days. There is no change in sales as a result of the new policy and the company's short-term financing cost is 12%. Round all to the nearest dollar. a) should the company adopt the policy? Support your answer by calculating the net change. (10 marks) Annuel Cardit Soler only 8oy customers are taking Lees 3% discount 2,275,000. 1,820,000 (54600) 1,765, you Change policy Do not change policy Provide 2 ways Winter Energy Corporation can improve collection times. (4 marks)