What change would be expected on the balance sheet

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Problem 1: If a firm had been extending trade credit on a 2/10, net/30 basis, what change would be expected on the balance sheet of its customer if the firm went to a net cash 30 policy?

a. Has a relaxed (lenient) credit policy.

b. Offers small discounts.

c. Has an inefficient credit and collection department.

d. Uses a lockbox system, synchronizes cash flows, and has short credit terms.

Reference no: EM132882976

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