Determine the increase in white oaks annual pretax earnings

Assignment Help Financial Management

Reference no: EM13927052

The White Oak Company's annual sales are $219 million. An average of 9 days elapses between when a customer mails its payment and when the funds become usable by the firm.

a. If the company could speed up the collection of funds by 2 days, what would be the increase in the firm's average cash balance?

b. Assuming that these additional funds can be invested in marketable securities that yield 7 percent per year, determine the increase in White Oak's annual (pretax) earnings.

Reference no: EM13927052

Questions Cloud

How does the virus impact human health : Recently, it has been suggested that both boys and girls be vaccinated against HPV. Why are medical professionals making this recommendation? Conduct some research. Find another oncogenic virus, then answer the following questions:

Parts that make up the sign like the pole : When people think of the Gestalt theory the thought that comes to mind is the first thing that comes to mind. You name something like a sign and simply think the sign when there are other parts that make up the sign like the pole and various othe..

Write persuasive essay on diversity at the workplace : For this assignment, you must compose a persuasive essay by making a case on a controversial topic, problem, issue, or question. The chosen topic is "diversity at the workplace", the paper cannot be pro/con, but you need to take a position on a de..

Number of patients with food intake issues : There are a growing number of patients with food intake issues. Choose one of the issues from the list below. Identify three causes and provide three nursing interventions, with rationales, the RN can implement to address the needs of the patient ..

Determine the increase in white oaks annual pretax earnings : Assuming that these additional funds can be invested in marketable securities that yield 7 percent per year, determine the increase in White Oak's annual (pretax) earnings.

Theory to educate and further a healthy family structure : The term system theory is a theoretical and methodological practice. With these practices comes a wide range of different disciplines. For Social workers he or she uses the system theory to gain a better understanding of family dynamics. Social wo..

Problem regarding the big-deal construction company : The first dam was started in Year 1 and completed in Year 3 at a profit before income taxes of $240,000. The second and third dams were started in Year 2.

Problem regarding the capital budgeting decision : Instructions: Prepare your solution to this problem in your choice of formatting, but in Excel. You may use a timeline format or a table, as illustrated in the text. Be thorough in your response, showing calculations and explaining your entries..

Cognitive behavioral therapy : Cognitive Behavioral Therapy can be effective in helping older adults in life because "Cognitive-behavioral therapy (CBT) is a popular and empirically supported treatment for a number of common mental health problems, including mild to moderate m..

User Account

All Pages