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Suppose your firm receives a $4.61 million order on the last day of the year. You fill the order with $1.95 million worth of inventory.
Suppose your firm receives a $4.61 million order on the last day of the year. You fill the order with $1.95 million worth of inventory. The customer picks up the entire order the same day and pays $1.24 million up front in cash; you also issue a bill for the customer to pay the remaining balance of $3.37 million within 40 days. Suppose your firm's tax rate is 0% (ie.. ignore taxes). Determine the consequences of this transaction for each of the following a. Revenues b. Earnings c. Receivables d. Inventory e. Cash
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