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 2) Should the company adopt the policy? Support your answer by calculating the net change. (10 marks) Annuel Credit Cles 2,275,000 only 80% cestomers are 1,820,000 Less 3% discount (54600) 1,765400 taking Change policy Do not change policy Provide Winter Cerer Corporation can improve colection Times. (4 marks)