George McElroy of Quality Sign Company in Visalia, California needs to buy a crane and is considering several options to do so.

Examine the financial information provided, and prepare a recommendation to Mr. McElroy

Cost of Acquiring Mobile Crane Accounts Receivable

Ford F750 Tandem truck $ 73,000 Current $ 34,500

120-ft heavy-duty crane $ 67,000 >30 days $ 6,000

Hydraulic outriggers $ 12,500 >60 days $ 5,000

Hydraulic pump $ 8,000 >90 days $ 4,000

30-ft truck bed $ 5,000 Delinquent $ 4,000

Installation of bed $ 1,500 _________________________

Delivery $ 1,500 Total Receivables $ 53,500

Sales Tax $ 12,338

License $ 1,000

_______________________________

Total acquisition cost $ 181,838