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QUESTION 3 Your firm receives a $5 million order on the last day of the year. You fill the order with $2 million in inventory.

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QUESTION 3 Your firm receives a $5 million order on the last day of the year. You fill the order with $2 million in inventory. The customer picks up the order on the same day and pays you $1 million in cash and you bill him for $4 million to be paid within 40 days. Assuming a tax rate of 0%, what is the impact on Revenue, Accounts Receivable, and Inventory? Revenue increases by $1 million Accounts Receivable increases by $4 million Inventory decreases by $2 million Revenue increases by $5 million Accounts Receivable increases by S4 million Inventory decreases by $2 million . Revenue increases by $5 million Accounts Receivable increases by $4 million Inventory increases by $2 million Revenue increases by $1 million Accounts receivable increases by S4 million Inventory increases by $2 million

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