General Accounting Rosenthal Design has daily sales of $59,000.The financial management team determined thata lockbox would reduce the collection time by 1.6days. Assuming the company can earn 5.2percent interest per year, what are the savingsfrom the lockbox?

Step 1: Definition of Collection Period of Account ReceivableThe collection period of accounts…

Answered: Rosenthal Design has daily sales of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Osborne Supply Company has credit sales of $2M per year. Collections average $8000 per day. Assume there are 250 working days per year. Osborne plans to reduce internal processing time by 1 day. What would its annual savings be, assuming a 14% cost of funds? Solution
Rosenthal design. ...accounting questions
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Rosenthal Design has daily sales of $59,000. The financial management team determined that a lockbox would reduce the collection time by 1.6 days. Assuming the company can earn 5.2 percent interest per year, what are the savings from the lockbox?