I need correct answer accounting question The Hewitt Company has calculated that their average collection period (ACP) is 25days. They are hoping that the new cash discounts they have implemented willreduce the ACP. After one month, they have the following data: 60% pay in 15 daysand 40% pay in 30 days. How much is the change in the ACP?A. 4 days reducedB. 4 days increasedC. 17 days increasedD. 21 days reducedE. No change

Step 1: Define Average Collection Period (ACP)ACP is a financial indicator called the average…

Answered: The Hewitt Company has calculated that…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 33P

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