Question

Jake’s Hardware Store sells most of their merchandise on credit to customers. Jake’s has been having difficulty maintaining their minimum cash balance, so they have started offering incentives to customers who pay off their purchases within 10 days. How does this help maintain a higher cash balance?

Answer 1

Answer:It will help to maintain a higher cash balance.

Step-by-step explanation:

The cash discount will encourage the customers to pay on time and this makes more funds available and lead to higher cash balance.