What is additional annual income of using lockbox system

Assignment Help Financial Accounting
Reference no: EM132893555

Question 1: A firm has daily cash receipts of P300,000. A bank has offered to provide a lockbox service that will reduce the collection time by three days. The bank required a monthly fee of P2,000 for providing this service. If monthly rates are expected to average 6% during the year, what is the additional annual income (loss) of using the lockbox system?

Reference no: EM132893555

Questions Cloud

Find one source that could be considered left biased : Find one source that could be considered left biased and explain why? Find one source that could be considered right biased and explain why?
About computerization and robotics : Discuss the advantages and disadvantages of introducing a centralized computerized hospital pharmacy system using robots
Discuss strategy recommendation for choice hotels management : Discuss the differences in strategy related to business growth, finance, and Treasury Stock purchases. Discuss any strategy recommendations for Choice Hotels
Ozone is complex chemical : Ozone is a complex chemical. In the 1980's a big concern was the hole in the ozone. What is the current status of the ozone hole?
What is additional annual income of using lockbox system : If monthly rates are expected to average 6% during the year, what is the additional annual income (loss) of using the lockbox system?
Compute for the annual inventory carrying costs : Company pays P150 to place a detailed order, and the monthly demand for the product is 4,000 units. Compute for the annual inventory carrying costs.
How do successfully undertake cold calling : Why is it important to understand a prospect's level of financial understanding during the interview and loan application process?
Cheating is form of dishonesty : Cheating is a form of dishonesty. Why do people cheat in education and business? What are some of the harms that come from these acts?
What is the economic order quantity for ana company : The cost of carrying one unit of inventory for one year is P8, and the purchase order cost per order is P32. What is the economic order quantity?

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much authority does an employee have to bind

How much authority does an employee have to bind a business into certain contracts which may or may not benefit the business? Find a case that you.

  What amount should samantha co report as investment

Paid dividends of $150,000. In its December 31, 2020 balance sheet, what amount should Samantha Co. report as investment in Camille Co.?

  Determine how the standard cost system

Determine how the standard cost system in Carton Medical Devices can be used for product costing and inventory valuation. Indicate the efficiencies that can be gained from the system. Examine the use of Carton‘s standard cost system in product costin..

  Do you think a companys annual report is useful

Do you think a company's annual report is useful? Why/why not? - As an investor, which sections of the annual report do you believe are the most useful and why?

  What should be the stock required rate of return

Risk pre- mium, RPM, is 5 percent. If the beta coefficient associated with a firm's stock is 2.0, what should be the stock's required rate of return?

  Total value assigned to the new piece of equipment

The new piece of equipment is expected to have a 10 year life and a salvage value of $15,000. What is the total value assigned to the new piece of equipment?

  Write the lower portion of corpus income statement

Write the lower portion of Corpus Christi's 2010 income statement

  Prepare bank reconciliation going from balance per bank

Sarasota Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records. Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance.

  What are the earnings per share and price-earnings ratio

Walker Machine Tools, What are the earnings per share and price-earnings ratio before the new shares are sold via the rights offering?

  What is head gears net income for last year

What is Head-Gear's net income for last year?- What is Head-Gear's break-even revenue?- Suppose Head-Gear wants to earn before-tax operating income of $153,320. How many units must be sold?

  Provide depreciation in full in the year of purchase

Due to unforeseen events in the computer industry, the asset was suddenly sold on 10 March 2016 for £45,000. The policy of the company is to provide depreciation in full in the year of purchase and none in the year of sale.

  Manufacturing overhead budget

The manufacturing overhead budget at Cutchin Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,900 direct labor-hours will be required in September. The variable overhead rate is $5.60 per direct labor-hour..

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!

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