Business, 14.05.2021 05:10 jamayeah02
A company has contracted with their bank to do a collection float study of their current collections process and tried to decide if to use lockbox service provided by the bank. The company has on average sale 80 million per month. Assume 30 days per month. For an average month, the bank has determined that the company has three basic batches of collections with associated collection float as listed below:
Batch Avg Collections Days of Float
#1 (Local) $ 25,000,000 2
#2 (Regional) $ 15,000,000 4
#3 (Distant) $ 40,000,000 6
The annual volume of checks is 12,000. The company's cost of capital is 7%. If the checks are processed internally, the processing fee would be $0.25 per item. If changing to a lockbox would have no effect on the local collection, but would reduce the regional float by 1 day and the distant float by 2 days. But the lockbox costs $10,000 per year and $0.5 per item processing fee. What is the net profit using lockbox service?
a) $3,153,667
b) $11,666,667
c) $221,667
d) $208,667
Answers: 1
Business, 21.06.2019 20:30, ShianHagen5
According to the research in strategic human resources management, answers: firms that are able to use human resource practices to develop socially complex human and organizational resources are able to gain competitive advantage over firms that do not engage in these practices. firms that are able to use human resource practices to develop socially simplistic human and organizational resources are able to gain competitive advantage over firms that do not engage in these practices. firms that are able to use human resource practices to develop socially complex human and organizational resources gain little advantage over firms that do not engage in these practices. firms that are able to use human resource practices to develop socially complex human and organizational resources are at a competitive disadvantage when compared to firms that do not engage in these practices.
Answers: 3
Business, 22.06.2019 19:00, princessbri02
In 1975, mcdonald’s introduced its egg mcmuffin breakfast sandwich, which remains popular and profitable today. this longevity illustrates the idea of:
Answers: 1
Business, 23.06.2019 00:20, wwesuplexcity28
E11-2 (multiple choice) identify the best answer for each of the following: which of the following statements about internal service fund liabilities is false? internal service funds may report both current and long-term liabilities. internal service funds may not issue bonds for financing purposes. internal service funds may report contingent liabilities. due to other funds would be reported as a current liability
Answers: 3
A company has contracted with their bank to do a collection float study of their current collections...
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