You have looked at the credit policy offered by the competition and determined that the

industry standard credit policy is $1/19$net $40.$The discount will begin to be offered on the first day of the first quarter. You want to examine how this credit policy would affect the cash budget and short$-$term financial plan. If this credit policy is implemented, you believe that $40\%$of all sales will take advantage of it$,$and the outstanding accounts receivable period will decline to $36$ days.

a$.$Rework the cash budget and short$-$term financial plan under the new credit policy and minimum cash balance of $$100,000.($Sheet $3)$

b$.$What interest rate are you effectively offering your customers?

I need to calculate Target Cash Balance, Net Cash Inflow, new short term investments, income from short term investments, Short term investments sold, new short term borrowing, Interest on short term borrowing, Short term borrowing repaid, Ending Cash Balance, Minimum Cash Balance, Cumulative surplus$/($deficit$),$Beginning short term investments, Ending short term investments, Beginning short term debt and ending short term debt