Proposal #2 would establish local collection centers throughout the region to decrease the time it takes...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Proposal #2 would establish local collection centers throughout the region to decrease the time it takes to convert credit payments that are mailed in by check to cash. It is estimated that establishing these collection centers would reduce the average collection time by 2 days. If the company currently averages $60,000 in collections per day, how many dollars will this suggested cash management system free up? If all freed up dollars would be used to pay down debt that has an interest rate of 6%, how much money could be saved each year in interest expense? Do the numbers suggest that this new system should be implemented if its total annual cost is $5200? Explain. Proposal #2 would establish local collection centers throughout the region to decrease the time it takes to convert credit payments that are mailed in by check to cash. It is estimated that establishing these collection centers would reduce the average collection time by 2 days. If the company currently averages $60,000 in collections per day, how many dollars will this suggested cash management system free up? If all freed up dollars would be used to pay down debt that has an interest rate of 6%, how much money could be saved each year in interest expense? Do the numbers suggest that this new system should be implemented if its total annual cost is $5200? Explain.
Expert Answer:
Answer rating: 100% (QA)
Answer a It is said that the collection centres would help reduce the collection time ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
It takes Carlson Corp. 30 days on average to collect its accounts receivable. The company began the year with $10,500 in accounts receivable. Sales on credit for the year amounted to $150,000....
-
Which one of the following is not a characteristic of the Public Company Accounting Oversight Board? a. Minimizes self-regulation in the accounting profession b. Has the authority to amend, modify,...
-
In recent years the average time it takes audit teams from Trimble and Martin to complete a company audit has been 55.8 hours. In monitoring the performance of one of these audit teams recently,...
-
please solve it in details with clear explanation for each step John made a deposit of 4400 into a fund at the beginning of each year for 16 years. At the end of 16 years, he began making semiannual...
-
The Excel file titled airline performance. xlsx lists the status of 100 flights as either on time or late along with the airline for that flight. a. Construct a contingency table for these data. b....
-
On January 1, 2015, Durdil Co. borrowed and received 500,000 from a major customer evidenced by a zero-interest-bearing note due in 3 years. As consideration for the zero-interest-bearing feature,...
-
At the beginning of the financial year on 1 April 19X5, a company had a balance on plant account of 372,000 and on provision for depreciation of plant account of 205,400. The companys policy is to...
-
Daniel Manufacturing Company uses two departments to make its products. Department I is a cutting department that is machine intensive and uses very few employees. Machines cut and form parts and...
-
Big Rock Candy Mountain Mining Co. Income Statements For the Years 2015 and 2016 2016 2015 Sales $369,300 $354,000 Cost of Goods 285,400 281,800 Gross Profit 83,900 72,200 Depreciation 26,820 26,360...
-
The management of the WBC television network has been celebrating for days. What a coup! After several unsuccessful attempts in recent decades, they finally have hit the big jackpot. They have won...
-
accounting. Question 3 (7 marks) You are provided with the following information: Sales for the year $400 000 Discounts provided during the year to customers for early $10 000 payment Doubtful debts...
-
Suppose that on January 1 you have a balance of $3100 on a credit card whose APR is 12%, which you want to pay off in 4 years. Assume that you make no additional charges to the card after January 1....
-
The City of Wolfe issues its financial statements for Year 4 (assume that the city uses a calendar year). The city's general fund is composed of two functions: (1) education and (2) parks. The city...
-
Suppose the mean height in inches of all 9th grade students at one high school is estimated. The population standard deviation is 5 inches. The heights of 10 randomly selected students are 75, 67,...
-
Suppose X1,..., X, are n iid random variables from the cumulative distribution func- tion F(x). Let Y = X; for i = 1,..., n. We further know that X; and Yi have the Y; same distribution. For 0.5 < p...
-
Old Country Links, Incorporated, produces sausages in three production departments -Mixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then mixed...
-
Q-3: encrypt the text??CS36? with Feistel and then (in Q-4)decrypt the resulting cypherUse a BLOCKSIZE of 16bits (2-bytes total per blockencryption).??_?? is the SPACE character = 0x20)16 Th 1 answer
-
Find the volume of the described solid S. A frustum of a right circular cone with height h, lower base radius R, and top radius r -r- --R
-
Find a general solution. Show the details of your calculation. (D 2 + 2D + 2I)y = 3e - x cos 2x
-
Find the complex and real potentials in the upper half-plane with boundary values 5 kV if x < 2 and 0 if x > 2 on the x-axis.
-
Prove Eq. (7). Use Eq. (3) for | a+ b | and Eq. (6) to prove the square of Eq. (7), then take roots.
-
Which is not one of the three B's of fraud? a. Bucks b. Babes c. Booze d. Bets e. \(B\) and \(C\) above
-
Motive to commit fraud usually will include all of the following except: a. Feelings of resentment b. Alcohol, drug, or gambling addiction c. Financial pressures and personal habits d. Inadequate...
-
Which statement is false with respect to backdating of stock options? a. Steve Jobs, CEO of Apple, was involved with backdating. b. Manipulating a stock option exercise date to a lower price will...
Study smarter with the SolutionInn App