Help with Excel formulas for the below question please
Epstein Company, a wholesale distributor of jewelry, sells to retail jewelry stores on terms of "net Its average collection period is days. The company is considering the introduction of a percent cash discount if customers pay within
days. Such a change in credit terms is expected to reduce the average collection
period to days. Epstein expects percent of its customers to take the cash
discount. Annual credit sales are $ million. Epstein's variable cost ratio is
and its required pretax return on receivables investment is percent. The company
does not expect its inventory level to change as a result of the change in credit
terms. Determine the net effect on Epstein's pretax profits.
Instruction: Please key in the relevant information in the blue cells in the Data Section. Then type
formulas in the yellow cells to determine the net effect on Epstein's pretax profits.
Direct cost of the discount
Net change in pretax profit
