Establishment of local collection centers

Assignment Help Accounting Basics
Reference no: EM13761266

Norma's Cat Food of Shell Knob ships cat food throughout the country. Norma has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by two and one-half days. Furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. The bank has a remote disbursement center in Iowa.

  1. If the company has $5 million per day in collections and $3 million per day in disbursements, how many dollars will the cash management system free up?  Justify your answers.
  2. If the company can earn 8 percent per annum on freed-up funds, how much will the income be? Justify your answers.
  3. If the annual cost of the new system is $800,000, should it be implemented? Explain why or why not.

Reference no: EM13761266

Questions Cloud

Data protection and security : Discuss ways that the IT organization can counter the negative impacts of social networking. Explain how the IT organization can maintain an ethical posture while managing organizational behavior related to social networking.
Identifying and describing hr challenge : Paragraph or two identifying and describing your first HR challenge, the reasons for the challenge and your plan for addressing the challenge.
Conducting a routine annual inspection of the plane : Plaintiff, Heath Benjamin (Benjamin), found more than $18,000 in currency inside the wing of an airplane. At the time of this discovery, State Central Bank (State) owned the plane and it was being serviced by Lindner Aviation, Inc. (Lindner). Benjami..
Perform a high-level analysis of four major domains of cobit : From the e-Activity, perform a high-level analysis of the four major domains of COBIT. (Keep in mind that COBIT is intended to make sure that IT provides the systematic rigor needed for the strong internal controls and Sarbanes-Oxley compliance.)
Establishment of local collection centers : Norma's Cat Food of Shell Knob ships cat food throughout the country. Norma has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by two and one-half days.
Assume production and demand occur at constant rates : Decided to set up a small production facility in Sydney to sell to local restaurants that want to offer gelato on their dessert menu. To start simple, he would offer only three flavors of gelato: fragola (strawberry), Chocolato (chocolate), and bacio..
Problems related to radio waves : Based on what we have studied about electrical charges and separations, which of the following are attracted to each other the strongest.
Compare and contrast risk identification techniques : Compare and contrast risk identification techniques and describe how these could improve the planning and mitigation of potential hazards
Business dispute regarding employee compensation : Conduct research online and explain a business situation where there is a business dispute regarding employee compensation.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  How will the character of the income or loss be determined

The character of any income or loss will be ordinary if the contributed property is sold by the partnership within five years after the date of contribution regardless of the character of the asset in the hands of the partnership.

  A company manufactures two products x and y the overhead

a company manufactures two products x and y. the overhead costs of 84000 have been traced into three cost pools that

  Behavioral aspects of budgetingltbr gt ltbr gtnorton

behavioral aspects of budgetingltbr gt ltbr gtnorton company a manufacturer of infant furniture and carriages is in the

  Types of adjustments applicable to category

Distinguish between the two categories of adjusting entries, and identify the types of adjustments applicable to each category.

  Te fixed element of monthly overhead costs b use the cost

high-low method following information is available regarding the total manufacturing overhead costs of paymore inc. for

  Kinsley and sons has sales of 185 million they had earnings

kinsley and sons has sales of 185 million they had earnings of 13 million. the web sales department is considering a

  Stan sweeney turned 20 years old today his grandfather

stan sweeney turned 20 years old today. his grandfather established a trust fund that will pay mr. sweeney 80000 on his

  Anita vasquez received 160000 from her mothers estate she

anita vasquez received 160000 from her mothers estate. she placed the funds into the hands of a broker who purchased

  Elimination of product c will make it possible to cut two

mr. earl pearl accountant for margie knall co. inc. has prepared the following product-line income

  In addition assume that beerbev sold 43000 barrels of beer

beerbev inc. reported the following operating information for a recent yearnet sales6880000cost of goods

  Timkin companyu2019s current costs per unit of producing

timkin companyu2019s current costs per unit of producing the subassemblies internally with the old equipment are given

  Explain the constructive receipt doctrine

Explain the Constructive Receipt Doctrine. What role does the U.S. Congress play in creating the tax law? Briefly explain how a tax bill becomes a tax law.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd