Question
1.What would be the number of days by which we could get our money faster if mailing time is decreased from 10 days to 6
1.What would be the number of days by which we could get our money faster if mailing time is decreased from 10 days to 6 days and processing time is decreased from 7 days to 3 days?
b.What would be the amount of cash freed up ifdailysales are $3m and we can speed them up by 3 days?
c.What would be the amount of cash freed up ifannualsales are $510m and we can speed them up by 3 days?
d.Diamond Files has annual sales of $18,682,301. A lockbox agreement would speed up collections by 5 days. The bank doesn't charge a fee but requires that Diamond leave $100,000 in the bank.
If Diamond can earn 3% on the freed funds, what is its net benefit?
Include a negative sign if it is negative.
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