Sanchez, inc., is considering a change in its cash-only sales policy. the new terms of trade would be net one month. Based on the following information, determine if the company should proceed or not. Describe the buildup of receivables in this case. The required return is .95 percent per month.

Current Policy New Policy

Price per unit $540 $540

Cost per unit $395 $395

Unit sales per month 1080 1130