You Are Considering Implementing a Lockbox System for Your Firm

question 55

Multiple Choice

You are considering implementing a lockbox system for your firm.The system is expected to reduce the average collection time by 1.2 days.On an average day,your firm receives 320 checks with an average value of $99 each.The daily interest rate on Treasury bills is 0.014 percent.What is the anticipated amount of the daily savings if this system is implemented?

• A)$2.61
• B)$3.29
• C)$4.45
• D)$5.32
• E)$5.78

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Definitions:

Imported Clothing

Apparel produced in one country and brought into another for sale.

Correlation Analysis

A statistical method used to assess the strength and direction of the relationship between two or more variables.

Formal Reports

Structured documents that present information and analysis to assist in decision-making, often following a specific format.

Informal Reports

Brief communications designed to convey information or findings in a less structured and formal manner, often used for internal business communications.