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February 2027 HOT AR Company of Atlanto solls fons and heaters to retail outlets throughout the Southeast Joe, the president of the comow, is thinking about changing the firm's credit poley to attract customers way from competitors. The present policy cols for a 11 net 30 cosh discount. The new policy would col for a 30.net 50 cash discount Currently, 30 percent of Hot Ar customers ce for the discount, and it want this number would go up to 50 percent with the new discount potey, it is further anticipated that one would recomand of $400,000 to $600.000 out of the change in the cash discount colicy The increased sales would affect the inventory wel. The gorge inventory.corried by Hot Abased on a cermination of on OG Assun set of font and to increase from 15,000 10 22.000 unta The order cost for each order is 8200 ond the carrying cost peronth $1.50 (these values will not change with the discount). The average inventory is based on toom toch unit in Inventory has on overage cost of $12 Cont of goodusold is equal to 5 percent of net sales onto and onministrative pentru 15 percent of outsoles, and interest Boyments of 4 percent walony be recessary for me incrote in the Boots receivable and inventory botonesTous will be 40 percent of before tax income Compute the counts tocablu bolance before and after the charpente con discount policy. Use the not soles (tut such counts) to determine the average doly on Determine too before and after the change in the couh discount policy, Translate this into avorape nentory in unts and doors) before and after the change the conhd.count policy Complete the following nome statement Before Policy Change After Polley Change Netwolesales-Cash discounts) Cost of goods sold Oross Good drive espente Operating interestonico recevoie ond inwintory 1140 come before des Tom come of Toxos Shoud the new coth discount policy beled Brally comment February 2027 HOT AR Company of Atlanto solls fons and heaters to retail outlets throughout the Southeast Joe, the president of the comow, is thinking about changing the firm's credit poley to attract customers way from competitors. The present policy cols for a 11 net 30 cosh discount. The new policy would col for a 30.net 50 cash discount Currently, 30 percent of Hot Ar customers ce for the discount, and it want this number would go up to 50 percent with the new discount potey, it is further anticipated that one would recomand of $400,000 to $600.000 out of the change in the cash discount colicy The increased sales would affect the inventory wel. The gorge inventory.corried by Hot Abased on a cermination of on OG Assun set of font and to increase from 15,000 10 22.000 unta The order cost for each order is 8200 ond the carrying cost peronth $1.50 (these values will not change with the discount). The average inventory is based on toom toch unit in Inventory has on overage cost of $12 Cont of goodusold is equal to 5 percent of net sales onto and onministrative pentru 15 percent of outsoles, and interest Boyments of 4 percent walony be recessary for me incrote in the Boots receivable and inventory botonesTous will be 40 percent of before tax income Compute the counts tocablu bolance before and after the charpente con discount policy. Use the not soles (tut such counts) to determine the average doly on Determine too before and after the change in the couh discount policy, Translate this into avorape nentory in unts and doors) before and after the change the conhd.count policy Complete the following nome statement Before Policy Change After Polley Change Netwolesales-Cash discounts) Cost of goods sold Oross Good drive espente Operating interestonico recevoie ond inwintory 1140 come before des Tom come of Toxos Shoud the new coth discount policy beled Brally comment

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