ZuoTi.Pro
Question

P15-14 (book/static) E Question Help Float Simon Corporation has daily cash receipts of $65,000. A recent analysis of its collections indicated that customers payments were in the mail an average of 2 days. Once received, the payments are processed in 2 days. After payments are deposited, it takes an average of 2.5 days for these receipts to clear the banking system a. How much collection float (in days) does the firm currently have? b. If the firms opportunity cost is 9%, would it be economically advisable for the firm to pay an annual fee of by 3 days? 16,500 for a lockbox system to reduce collection float a. The amount of collection float (in days) the firm currently has is days. (Round to one decimal place.) Enter your answer in the answer box and then click Check Answer parts remaining Clear All Check Answer

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Home nert Page Layout Formulas Data Review View dd-Ins Σ AutoSum Cut ー E ゴWrap Text Sort &Find & Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ ta copy. в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C 2 ClearFe Select Edting Paste Format Painter Cells Number Font Alignment Clipboard AU23 AS BC BD BE BF BG AW AX AY AZ BA AT AU AV 10 SIMON 12 13 14 15 16 17 18 19 20 21 COLLECTION FLOATMAIL TIME PROCESSING TIME CLEARING TIME 2+2+2.5= 6.5 DAYS 17550 OPPORTUNITY COST = 65000 X 9% X 3 DAYS- THE FIRM SHOULD GO FOR LOACKBOX SYSTEM AS SAVINGS (17550) ARE HIGHER THAN COST OF LOCKBOX SYSTEM (16500) 23 24 25 26 27 28 4 CAP STRU VALUE LOCK BOX DILUTION DOLLAR COST AVG MORTGAGEEXPO Sheet1 Sheet2 Shel CALCULATOR LOAN OPTIONS pv,fv, ann 福 130% 05:33 08-01-2019

1 0
Add a comment
Know the answer?
Add Answer to:
P15-14 (book/static) E Question Help Float Simon Corporation has daily cash receipts of $65,000. A recent...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • P15-14 (book/static) Question Help Float Simon Corporation has daily cash receipts of $65,000. A recent analysis...

    P15-14 (book/static) Question Help Float Simon Corporation has daily cash receipts of $65,000. A recent analysis of its collections indicated that customers' payments were in the mail an average of 2 days. Once received, the payments are processed in 2 days. After payments are deposited, it takes an average of 2.5 days for these receipts to clear the banking system. a. How much collection float (in days) does the firm currently have? b. If the firm's opportunity cost is 9%,...

  • Float Simon Corporation has daily cash receipts of $65,000. A recent analysis of its collections indicated...

    Float Simon Corporation has daily cash receipts of $65,000. A recent analysis of its collections indicated that customers' payments were in the mail an average of 2.5 days. Once received, the payments are processed in 2.5 days. After payments are deposited, it takes an average of 2 days for these receipts to clear the banking system. a. How much collection float (in days) does the firm currently have? b. If the firm's opportunity cost is 11%, would it be economically...

  • P14-14 (similar to) Question Help Float Simon Corporation has daily cash receipts of $57,000. A recent...

    P14-14 (similar to) Question Help Float Simon Corporation has daily cash receipts of $57,000. A recent analysis of its collections indicated that customers' payments were in the mail an average of 3 days. Once received, the payments are processed in 3 days. After payments are deposited, it takes an average of 3 days for these receipts to clear the banking system. a. How much collection float (in days) does the firm currently have? b. If the firm's opportunity cost is...

  • CASH MANAGEMENT AT WEBB CORPORATION Webb Corporation was founded 20 years ago by its president, Bryan...

    CASH MANAGEMENT AT WEBB CORPORATION Webb Corporation was founded 20 years ago by its president, Bryan Webb. The company originally began as a mail-order company, but it has grown rapidly in recent years, in large part due to its website. Because of the wide geographical dispersion of the company’s customers, it currently employs a lockbox system with collection centers in San Francisco, St. Louis, Atlanta, and Boston. Holly Lennon, the company’s treasurer, has been examining the current cash collection policies....

  • Hello, I am requesting help with the following question. Can you please show the work on...

    Hello, I am requesting help with the following question. Can you please show the work on how to derive at the correct answer? Thank you Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks.   Sales are projected to increase by $200,000 per year if credit is extended to these new customers. Of the new accounts receivable generated, 6% are projected to be uncollectible. Additional collection costs are projected...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT