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:

Vittore Carpaccio

An Italian painter of the Venetian school, known for his narrative works and precise detail, active during the early Renaissance period.

Triptychs

Artworks consisting of three panels, usually hinged together, that can be displayed open or closed, often used in altarpieces.

Altarpieces

are works of art, such as paintings, sculptures, or reliefs, situated behind or on an altar of a Christian church, serving as a visual focus of religious worship.

Saint Luke Drawing

An artistic theme depicting Saint Luke, traditionally considered the patron saint of artists, often shown in the act of drawing or painting the Virgin Mary.