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Whitmer Inc.sells to customers all over the U.S.,and all receipts come in to its headquarters in New York City.The firm's average accounts receivable balance is $2.5 million,and they are financed by a bank loan at an 11% annual interest rate.The firm is considering setting up a regional lockbox system to speed up collections,and it believes this would reduce receivables by 20%.If the annual cost of the system is $15,000,what pre-tax net annual savings would be realized?
Labile Cells
Cells that are constantly dividing and have a short lifespan, such as those found in the skin and digestive tract.
Stratified Squamous
A type of epithelial tissue composed of multiple layers of flat cells designed to protect underlying tissues in areas subject to abrasion.
Exposed Surface
The outer or external part of an object or body that comes into contact with the environment.
Transitional Epithelial
A type of epithelium that can stretch and change its shape, found lining organs that need to expand, such as the bladder.
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