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:

Papillary Layer

The uppermost layer of the dermis, directly beneath the epidermis, containing capillaries and tactile receptors.

Areolar Tissue

A type of loose connective tissue that provides support and cushioning to surrounding tissues and organs.

Dermal Papillae

Small, nipple-like extensions of the dermis into the epidermis, increasing surface area for nutrients and oxygen transfer.

Stratum Spinosum

A layer of the epidermis situated just above the basal layer, known for its spiny appearance under a microscope.