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Explain how each of the following actions is likely to affect each of accounts receivable, sales, and profit

Explain how each of the following actions is likely to affect each of accounts receivable, sales, and profit
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FINANCE

Part E Explain how each of the following actions is likely to affect each of accounts receivable, sales, and profit. In your answer, explain whether the action will increase or decrease each variable or have an indeterminate effect. [20 points] a) The firm loosens its credit standards. b) The terms of trade are changed from 3/10, net 30 to 2/10, net 30. c) The terms of trade are changed from 3/10, net 40 to 3/10, net 30. d) The credit manager gets tough with past due accounts.

 

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