On Average, a Firm Collects Checks Totaling $250,000 Per Day

question 97

True/False

On average, a firm collects checks totaling $250,000 per day.It takes the firm approximately 4 days from the day the checks were mailed until they result in usable cash for the firm.Assume that (1) a lockbox system could be employed which would reduce the cash conversion procedure to 2 1/2 days and (2) the firm could invest any additional cash generated at 6% after taxes.The lockbox system would be a good buy if it costs $25,000 annually.

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Definitions:

Short Stature

A condition characterized by a height significantly below the average for a person's age, sex, genetic background, and population group.

Webbed Neck

A physical condition in which the skin of the neck extends down to the shoulders, giving an appearance of webbing, often associated with certain genetic conditions.

Genetic Imprinting

A genetic phenomenon by which certain genes are expressed in a parent-of-origin-specific manner.

Polygenic Inheritance

A mode of genetic inheritance in which traits are influenced by multiple genes, often resulting in a continuous range of possible phenotypes.