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Reference no: EM131556920

1. Exporters who require guarantee of payment will ask for:

Trade acceptances

Bankers' acceptances

An irrevocable letter of credit

None of the above

2. Suppose your firm receives $4.2 million order on the last day of the year. You fill the order with $2.6 million worth of inventory. The customer picks up the entire order the same day and pays $1.1 million upfront in? cash; you also issue a bill for the customer to pay the remaining balance of $3.1 million in 30 days. Suppose your? firm's tax rate is 0.0% (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 change by ?$ million.  ?(Round to one decimal place. Use a negative sign for a decrease in? value.)

Reference no: EM131556920

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