1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sedbober [7]
3 years ago
15

Proposal #2 would establish local collection centers throughout the region to decrease the time it takes to convert credit payme

nts that are mailed in by check to cash. It is estimated that establishing these collection centers would reduce the average collection time by 2 days.If the company currently averages $60,000 in collections per day, how many dollars will this suggested cash management system free up?If all freed up dollars would be used to pay down debt that has an interest rate of 5%, how much money could be saved each year in interest expense?Do the numbers suggest that this new system should be implemented if its total annual cost is $5200? Explain.
Business
1 answer:
mezya [45]3 years ago
8 0

Answer: a. $120,000

b. $6,000

c. Yes

Explanation:

a. It is said that the collection centres would help reduce the collection time by 2 days and that every day $60,000 comes in.

If the proposal will reduce the amount of time taken to collect by 2 days then that means that the amount freed up is the amount that they would have collected in two days had it not been for the system.

That amount would be,

= $60,000 * 2

= $120,000

b. If they used this free up cash to pay off a debt that was accumulating 5% per year then the 5% will be saved.

The amount saved therefore is,

= 120,000 * 5%

= $6,000

By retiring a $120,000 that was accruing $6,000 a year, the proposal has enabled that $6,000 to be saved instead.

c. The cost of implementing this proposal is $5,200 per year and yet the savings it gives in interest is $6,000.

As the savings are higher than the cost, the number definitely suggest that the project should be implemented because it is more beneficial than it costs.

You might be interested in
how might an interactive leader like mary barra communicate a policy change that impacts all gm employees from executive-level m
CaHeK987 [17]

A dynamic leader must establish task teams at various organizational levels to communicate the advantages of a policy change, organize a series of town hall meetings to discuss the change and hear employee concerns, and hold informal meetings with senior managers, department heads, and staff members.

<h3>What is a policy?</h3>

A purposeful set of rules designed to direct behavior and produce logical results is called a policy. A policy is a declaration of intent that is carried out through a method or protocol. Typically, a governance board inside a company adopts policies. Both subjective and objective decision-making can benefit from policies. Policies used in subjective decision-making typically help senior management with choices that must be based on the relative merits of a variety of variables and, as a result, are frequently challenging to assess objectively, such as work-life balance policies. In addition, governments and other institutions have policies in the form of laws, rules, guidelines, administrative procedures, rewards, and voluntary practises. Resources are frequently distributed in accordance with policy choices. A policy is a guideline for recurring or routine organizational actions.

To learn more about policy, visit:

brainly.com/question/360779

#SPJ4

7 0
1 year ago
g FisherCo is intending to invest in a new project. The ________ is the minimum rate of return the firm will accept on this proj
IrinaK [193]

FisherCo is intending to invest in a new project. The hurdle rate is the minimum rate of return the firm will accept on this project.

The hurdle rate is the minimum rate of return a project must have in order for a project to be accepted. It can also be referred to as the discount rate or the required rate of return or the cost of capital.

When the hurdle rate is greater than the internal rate of return of a project, the project would be rejected. If the hurdle rate is less than the internal rate of return of a project, the project would be accepted.

To learn more, please check: brainly.com/question/17439820

6 0
3 years ago
The Tuck Shop began the current month with inventory costing $19,000, then purchased inventory at a cost of $52,950. The perpetu
DaniilM [7]

Answer:

Inventory shrinkage = $1,322

Explanation:

We know,

Inventory shrinkage = Ending inventory - Actual inventory at hand

Given,

Actual inventory at hand = $13,500

Ending inventory = Beginning inventory + Purchase - Inventory sold(Costing price)

Or, Ending inventory = $19,000 + $52,950 - $57,128

Or, Ending inventory = $71,950 - $57,128

Or, Ending inventory = $14,822

Therefore,

Inventory shrinkage = Ending inventory - Actual inventory at hand

Or, Inventory shrinkage = $14,822 - $13,500

Or, Inventory shrinkage = $1,322

5 0
3 years ago
Tonya contributes $150,000 to Swan, Inc., for 80% of the stock. In addition, she loans Swan $600,000. The maturity date on the l
USPshnik [31]

Answer:

A. If the loan is not reclassified as equity, Swan can deduct interest expense annually of $18,000, and Tonya includes in gross income annually interest income of $18,000.

Explanation:

Loans received under $385 should not be reclassified as equity.

Interest expense is determined by multiplication of the money Tonya loans Swan multiplied by the interest rate.

Therefore,

Interest expenses = 600000 x 3%

                              = $18000

8 0
3 years ago
Greer Manufacturing purchases property that includes land, buildings and equipment for $4.7 million. The company pays $185,000 i
nekit [7.7K]

Answer:

Explanation:

The journal entry is shown below:

Land A/c Dr $1,459,920

Equipment A/c Dr $2,085,600

Building A/c Dr $1,668,480

          To Cash A/c $2,607,000         ($5,214,000 × 50%)

           To Notes payable A/c  $2,607,000       ($5,214,000 × 50%)

(Being purchase of property is recorded)

The total property cost would be

= $4,700,000 + $185,000 + $218,000 + $111,000

= $5,214,000

Estimated value of land = $5,214,000 × 28% = $1,459,920

Estimated value of building = $5,214,000 × 40% = $2,085,600

Estimated value of equipment = $5,214,000 × 32% = $1,668,480

6 0
3 years ago
Other questions:
  • Considere que a empresa vale dos lirios Ltda, recebeu por meio de caixa, o valor registrado an conta de clientes referente a ven
    13·1 answer
  • A company pays its employees $4,000 each Friday, which amounts to $800 per day for the five-day workweek that begins on Monday.
    9·1 answer
  • Business personal property rendition of taxable property. True or False
    5·1 answer
  • Sales for January are budgeted at 50,000 units, and the company expects sales to increase 4% each month. How many units will nee
    7·1 answer
  • Olsson Corporation received a check from its underwriters for $72 million. This was for the issue of one million of its $5 par s
    11·1 answer
  • This law prohibits employment discrimination against qualified individuals with disabilities in the private sector, and in state
    12·1 answer
  • To promote information sharing, certain guidelines must be followed in DoD Manual 5200.01, Volumes 1 and 2, when classifying and
    12·1 answer
  • An automatic stabilizer:________
    14·1 answer
  • Part 1 of 4
    10·1 answer
  • The investment demand slopes downward and to the right because lower real interest rates Multiple Choice expand consumer borrowi
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!