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Suppose your firm receives a $4.76 million order on the last day of the year. You fill the order with $2.25 million worth of inventory.
Suppose your firm receives a $4.76 million order on the last day of the year. You fill the order with $2.25 million worth of inventory. The customer picks up the entire order the same day and pays $1.17 million up front in cash; you also issue a bill for the customer to pay the remaining balance of $3.59 million within 40 days. Suppose your firm's tax rate is 0% (i.e., ignore taxes). Determine the consequences of this transaction for each of the following:
a. Revenues
b. Earnings
c. Receivables
d. Inventory
e. Cash
a. Revenues
Revenues will
increase or decrease
by ? nothing million. (Select from the drop-down menu and round to two decimal places.)
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