​Whitmer Inc

question 12

Multiple Choice

​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?

• A)​$29,160
• B)​$32,400
• C)​$36,000
• D)​$40,000
• E)​$44,000

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Definitions:

Text Align

A property in text formatting that determines the horizontal alignment of text within a document or a container, such as left, right, center, or justified.

Control Layout

The arrangement and organization of interactive elements and controls within a user interface or application.

Form Design View

The mode in database management systems where users can design and edit the layout and functionality of forms used for data entry and display.

Date Control

A graphical interface element that allows users to input or select dates, typically through a calendar popup.