A large manufacturing firm has been selling on a 310 net 30, Financial Management

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A large manufacturing firm has been selling on a 310 net 30

A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What change might be expected on the balance sheets of its customers?

1. Increased receivables and increased bank loans

2. Increased payables and increased bank loans

3. Increased payables and decreased bank loans

4. Decreased receivables and increased bank loans

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Financial Management: A large manufacturing firm has been selling on a 310 net 30

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Financial Management: A large manufacturing firm has been selling on a 310 net 30

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