If there is an increase in the number of discounts taken, that means that more customers are paying early to take advantage of the discount. If there is a decrease in bad debts, that means that there are fewer old receivables. A decrease in the investment in accounts receivable coupled with the increase in the credit sales also indicates that receivables are not outstanding for as long as before. All of these will also mean that the average collection period has decreased.
If more people are taking the discount, that probably means that the amount of the discount has increased.
Given all of the factors in the question that indicate that receivables are collected more quickly would indicate that accounts receivable turnover has increased.
Because cash and receivables are both included in working capital, the speed of the collection of the receivables will not impact the working capital of the company.
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