Question 3a
Marking Guide
(a)
Increase in net profit 1
Benefit of reduction in bad debts 1
Reduction in trade receivables 1
Reduction in financing costs 1
Cost of discount 1
Evaluation of early settlement discount 1
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6
(a)
Increase in net profit 1
Benefit of reduction in bad debts 1
Reduction in trade receivables 1
Reduction in financing costs 1
Cost of discount 1
Evaluation of early settlement discount 1
–––
6