1. Exporters who require guarantee of payment will ask for:
Trade acceptances
Bankers' acceptances
An irrevocable letter of credit
None of the above
2. Suppose your firm receives $4.2 million order on the last day of the year. You fill the order with $2.6 million worth of inventory. The customer picks up the entire order the same day and pays $1.1 million upfront in? cash; you also issue a bill for the customer to pay the remaining balance of $3.1 million in 30 days. Suppose your? firm's tax rate is 0.0% (i.e., ignore? taxes). Determine the consequences of this transaction for each of the? following:
a. Revenues
b. Earnings
c. Receivables
d. Inventory
e. Cash
a. Revenues
Revenues change by ?$ million. ?(Round to one decimal place. Use a negative sign for a decrease in? value.)