Cross Collectibles currently fills orders from all over the U.S. and receipts come into the headquarters...

 

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Cross Collectibles currently fills orders from all over the U.S. and receipts come into the headquarters in Little Rock Arkansas. The firm's average accounts receivable is $2.5 million and is financed by an 11% annual simple interest loan. Cross is considering a new follow-up system to speed up collections which it believes will reduce AR by 20%. The annual cost of the system is $15,000. What is the estimated net annual savings to the firm from implementing the new system? a) b) $60,000 $40,000 $55,000 $500,000 $30,000 Cross Collectibles currently fills orders from all over the U.S. and receipts come into the headquarters in Little Rock Arkansas. The firm's average accounts receivable is $2.5 million and is financed by an 11% annual simple interest loan. Cross is considering a new follow-up system to speed up collections which it believes will reduce AR by 20%. The annual cost of the system is $15,000. What is the estimated net annual savings to the firm from implementing the new system? a) b) $60,000 $40,000 $55,000 $500,000 $30,000

Answer rating: 100% (QA)

c 55000 The estimated net annual savings to the firm from imp... View the full answer