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Could you help me with my practice quiz? Howell supplies steel rods in the construction industry. They sold $125 million worth of products last year,

Could you help me with my practice quiz?

Howell supplies steel rods in the construction industry. They sold $125 million worth of products last year, and they offer a 60 days credit period period.

a. What is their accounts receivable investment?

b. Howell would like to restrict its credit terms to 45 days. How much would this reduce its accounts receivable investment?

c. If Howell could earn 12%, how much could they earn annually if Howell reduced its A/R investment?

Thank you!

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