What Is the Benefit for a Firm with Daily Sales

question 80

Multiple Choice

What is the benefit for a firm with daily sales of $30,000 to be able to speed up collections by three days, assuming an 8 percent annual opportunity cost of funds?

• A)$7,200 daily benefit
• B)$7,200 annual benefit
• C)$30,000 annual benefit
• D)$90,000 annual benefit Daily sales x 3 days x .08
• = $30,000 x 3 x .08

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Definitions:

Intangible Assets

Non-physical assets possessed by a company, such as intellectual property, goodwill, and brand reputation, which can be as valuable as tangible assets.

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.

Financial Performance

The measure of an organization's profitability, revenue, expenses, and overall financial health over a specific period.

Legal Compliance

Adherence to laws, regulations, standards, and ethical practices applicable to an organization's operations.