A. Rework the cash budget and short-term financial plan under the new credit policy and a minimum cash balance of $100,000. (Sheet 3)
b. What interest rate are you effectively offering your customers?
4. You have talked to the company’s suppliers about the credit terms that you receive. Currently,
the company receives terms of net 45. The suppliers have stated that they would offer new
credit terms of 1.5/15, net 40. The discount would begin to be offered on the first day of the
first quarter.
a. What interest rate are suppliers offering the company?
b. Rework the cash budget and short-term financial plan assuming you take the offered
credit terms on all orders and the minimum cash balance is $100,000. Also, assume the
company offers the credit terms detailed in Question 3. (Sheet 4)