Hi, Tech Inc. is considering the establishment of a lockbox system with its bank. The firm receives

Fantastic news! We've Found the answer you've been seeking!

Question:

Hi, Tech Inc. is considering the establishment of a lockbox system with its bank. The firm receives daily remittances of $1 million and could earn 8% on any funds freed up through faster collections. If the lockbox system can save 2.5 days in the collection process, and the firm's bankers will charge $80,000 per year to operate the lockbox system, is it worth it to establish the system?

Posted Date: Nov 24, 2021 06:26 PM

See More Questions

The metropolitan airport commission is considering the establishment of limitations on noise pollution around a local airport. At the present time, the noise level per jet takeoff ine one...
Cornell Company is considering the establishment of a pension plan. The proposed plan has the following features: Contributions for employees earning less than $100,000 will be based on 3% of salary,...
Norfolk Savings Bank is considering the establishment of a new branch office at the corner of 49th Street and Hampton Boulevard. The savings associations economics department projects annual...
P Corporation acquired an 80% interest in S Corporation two years ago at an implied value equal to the book value of S. On January 2, 2017, S sold equipment with a five-year remaining life to P for a...
An outpatient clinic has kept a record of walk- in patients during the past year. The table below shows the expected number of walk- ins by day of the week: The clinic has a staff of five physicians,...
The work breakdown structure for building a house (levels 1 and 2) is shown below: (a) Add two level-3 activities to each of the level-2 activities to provide more detail to the WBS. (b) Select one...
The common methods for the computational solution of radiative transport equations are summarized briefly below: 1. The discrete ordinate method 2. The Monte-Carlo method 3. Hottel's zonal method 4....
The Crescent Drilling Company owns the drilling rights to several tracts of land on which natural gas has been found. The amount of gas on some of the tracts is somewhat marginal, and the company is...
Delivering the right product, at the right price, at the right time, to the right customer is a marketing challenge that has always existed. In this assignment, you will be considering the launch of...
Condensed financial data of Sheffield Corp. follow. Sheffield Corp. Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory. Prepaid expenses Long-term investments Plant...
10. Moccio Enterprises, Inc., produces and sells a single product whose selling price is $120 per unit and whose variable expense is $37.20 per unit. The company's monthly fixed expense is $356,040....
Powerful, Greedy Enterprise, known as PG&E, is a public utility that operates several power plants to generate electric power and networks to distribute that power to its customers. As such, it is...
Responses Free shipping on returns. Free shipping on returns. By supporting efficient transactions and fulfillment through infrastructure. By supporting efficient transactions and fulfillment through...
November 25 has been declared the "International Day of No Violence against Women." This has been chosen in commemoration of the Mirabal of the Dominican Republic, they were murdered by the dictator...
What are 4 benefits of using recognized specifications for RFQs?
Describe an unusual interior space with lots of interesting appurtenances, gadgets, etc in 500 words.
The old structure of watching a new TV episode in the fall or catching the rerun over the summer is a discredited model in these digital days. Netflix, Hulu, Amazon Prime and other streaming services...
Frontland Advertising creates, plans, and handles advertising campaigns in a three-state area. Recently, Frontland had to replace an inexperienced office worker in charge of bookkeeping because of...
Determine the most appropriate strategy that can generate liquidity and accomplish Omos goals. Justify your response. Jing asks Omo about his plans for the shares of his previous employers company....
Discuss four important risk and tax-related considerations that are relevant to Omos portfolio. With most of Omos personal net worth tied up in his software company, he is asset rich but cash poor....
Recommend, for both Enlows niece and nephew, the most tax-efficient wealth transfer option (lifetime gift or testamentary bequest). Show your calculations. Recommend, for both Enlow's niece and...

Hi, Tech Inc. is considering the establishment of a lockbox system with its bank. The firm receives

Question:

Expert Answer:

Benefits from lock box amount x no of days ... View the full answer

Students also viewed these accounting questions