When you are doing your cash flow budgeting and change assumptions, you notice your Ending Cash projection went down. Which changed assumption was responsible?Select an answer:projecting all your company's sales being cash and not providing payment termsprojecting a 60-day instead of a 30-day credit term for purchases from vendorsprojecting a shorter recovery time for your company's accounts payableprojecting a 30-day instead of a 60-day credit term for purchases from vendors

The assumption that could have led to a decrease in the Ending Cash projection is "projecting a 30-day instead of a 60-day credit term for purchases from vendors".

Here's why:

1. If you project all your company's sales being cash and not providing payment terms, this would actually increase your cash flow, not decrease it. This is because you're receiving cash immediately upon sale, rather than waiting for payment.

2. Projecting a 60-day instead of a 30-day credit term for purchases from vendors would also increase your cash flow. This is because you're delaying payment to vendors, which allows you to hold onto your cash longer.

3. Projecting a shorter recovery time for your company's accounts payable would also increase your cash flow. This is because you're receiving payment from customers faster.

4. However, projecting a 30-day instead of a 60-day credit term for purchases from vendors would decrease your cash flow. This is because you're paying vendors faster, which means you're parting with your cash sooner. This would result in a decrease in your Ending Cash projection.