00:01
So, in a, the average collection, average collection period increased to 45 days.
00:14
So, additional account receivable that is increased sale dollar 15000 by average collection period 45 days.
00:28
So, on solving this, we get dollar 3333 .33 per day.
00:35
Now, second one is, the average increase, now fine increase over previous 30 days collection period.
00:53
So, it will be additional account receivable dollar 3333 .33 per day into 45 days minus 30 days.
01:09
So, on solving we get dollar 33333 .30 additional account receivable if policy a adopt this much.
01:20
Now, for second one, additional investment, additional investment.
01:31
So, additional account receivable that is dollar 3333 .30 into 1 minus 0 .25 that is tax rate.
01:42
So, on solving we get dollar 250000.
01:46
In third one, policy b, policy b result in incremental sale of dollar 1 .2 million.
02:08
The bad debt loses incremental sale policy a 4 percent, policy b 8 percent, policy c 15 percent and policy d 20 percent.
02:31
So, additional bad debt losses that is incremental sales dollar 12000 into bad debt, bad debt loss rate for policy b.
02:50
So, 0 .08...