MLX Has Annual Sales of $320 Million Per Year and Has

question 9

Multiple Choice

MLX has annual sales of $320 million per year and has calculated the collection float to be 12 days. If MLX is currently paying 9.35% on its line of credit, what amount of interest expense could be saved if the collection float is reduced by 3 days? (Assume 365 days per year.)

• A) $249,333
• B) $573,808
• C) $299,200
• D) $245,918

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Definitions:

Hernias

Occurrences where part of an organ is displaced and protrudes through the wall of the cavity containing it, often due to weakness or tear in the wall.

Babinski Reflex

A reflex action in which the big toe extends upward and the other toes fan out when the sole of the foot is stimulated, indicative of neurological issues.

Moro Reflex

An involuntary response seen in newborns, where they spread their arms and then hug themselves if they feel they are falling or when startled.

Palpate Testes

The medical examination procedure of feeling the testicles to check for abnormalities, size, and texture.