Currently,your Firm Requires 2 Days to Process the Checks Which

question 4

Multiple Choice

Currently,your firm requires 2 days to process the checks which customers mail in to pay for their credit purchases.The average mail time associated with these payments is 3.4 days and the check clearing time is 2.1 days.If your firm adopts a lockbox system,the mail time will be cut in half.In addition,if employees are reassigned,checks could be processed the same day they are received.How long will your collection time be if both the lockbox system and the job reassignments are implemented?

• A)3.85 days
• B)4.10 days
• C)4.80 days
• D)4.90 days
• E)5.55 days