User Account

All Pages

Solve the net daily advantage of the system

Assignment Help Financial Accounting
Reference no: EM132563380

Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. She forecasts that 900 payments a day will be made to lock boxes with an average payment size of $2,500. The bank's charge for operating the lock boxes is $0.40 a check. The interest rate is 0.015% per day.

Question a. If the lock box makes the cash available 2 days earlier, calculate the net daily advantage of the system. (Do not round intermediate calculations.)

Question b. Is it worthwhile to adopt the system?

  • Yes
  • No

Question c. What minimum reduction in the time to collect and process each check is needed to justify use of the lock-box system? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM132563380

Questions Cloud

What amount of loss on impairment of goodwill Sunland record : Sunland Corporation acquired End-of-the-World Products on January 1, 2017 for $6700000, What amount of loss on impairment of goodwill Sunland record
Integrate the traits and stated goals : How does Facebook training programs integrate the traits and stated goals on their Careers page into specific
Find how much is the ending inventory : How much is the ending inventory? Prepare the necessary adjusting entries. Stocktake as at 31 December 2016 revealed inventory cost amount of $ 80,600.
Prepare Colahs journal entries for transactions : Colah Company purchased $2,500,000 of Jackson, Inc., 5% bonds at their face amount on July 1, 2021, Prepare Colah's journal entries for above transactions
Solve the net daily advantage of the system : Solve the net daily advantage of the system. (Do not round intermediate calculations.),If the lock box makes the cash available 2 days earlier
Business continuity and disaster recovery plans : It is important to have backup tools, processes, and policies for both business continuity and disaster recovery plans.
Compute the portion of the elimination entry : Compute the portion of the elimination entry at the time of consolidation to account for any required adjustment to the sales account
Find what is the expected profit of granting credit : Find What is the expected profit of granting credit? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations.)
Compute the income under variable costing : Sales were 24 units in 2018, 20 units in 2019, and 28 units in 2020. Compute the income under variable costing for 2019

Reviews

Write a Review

Financial Accounting Questions & Answers

  Temple industrial production cost report

Temple Industrial’s production cost report for its Packaging Department reveals that the cost per equivalent unit started and completed in November was $165. The same report reveals that the cost per equivalent unit transferred out of the Packaging D..

  Prepare trading account profit and loss account profit

Prepare Trading account profit and Loss account Profit and Loss Appropriation Account and Balance Sheet in the prescribed form.

  Analyze financial statements of a publicly traded company

What is the amount of property and equipment on the balance sheet for the two most recent years?-  What is the amount of accumulated depreciation and the depreciation expense?

  What will profit or loss be if corn prices turn out

The contract size of the futures is 20 bushel. What will your profit or loss be if corn prices turn out to be $5.969 per bushel at expiration?

  Calculate the standard fixed overhead rate

Compute the applied fixed overhead and the applied variable overhead. What is the total fixed overhead variance? Total variable overhead variance? Calculate the standard fixed overhead rate and the standard variable overhead rate.

  Prepare consolidated financial statements

Under what circumstances does a company prepare consolidated financial statements? If a short-term investment in available-for-sale securities costs $10,000 and is sold for $12,000, how should the difference between these two amounts be recorded?

  Find the trial balance for nybrostrand company

Find the trial balance for Nybrostrand Company. Prepare an income statement and balance sheet, in good format, based on Formats of Financial Statements (Presentations).

  Compare historical cost with fair value accounting

BAO2202 Financial Accounting Assignment. Required: Compare historical cost accounting with fair value accounting (AASB 13) and evaluate bow the use of fair value accounting has either increased or decreased decision-useful information for the users..

  Calculate the amounts of these ratios for year four

Calculate the amounts of these ratios for Year 4. Assess the changes in the short-term liquidity risk of Hasbro between Year 2 and Year 4 and the level of that risk at the end of Year 4.

  How organization better capitalize on nonfinancial factors

MBA 520 Accounting and Financial Analysis Assignment, Southern New Hampshire University, USA. How might organization better capitalize on nonfinancial factors

  Prepare a fictitious balance sheet

What are several examples of internal management, management prepared information that ordinarily would not be communicated externally? Why?

  Explain the term error of original entry

Explain the term Error of Original entry

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd