i need answer ASAP 3 (a) Edible Foods has annual sales of $520 million per year and has calculated that the collection float is 10 days If Edible Foods is currently paying 8 5 percent on its line of credit, what amount of interest expense could be saved if the collection float is reduced by 3 days Assume 365 days per year ( 6 points) (b) Tamu is considering the implementation of a lockbox collection system for its mid western and western sales regions Sales in those two regions are 40 percent of Tamu's annual sales of $600 million The lockbox system will cost $160,000 a year and reduce collection time by 3 days If Tamu could invest any released funds at 8 percent, should it use the lockbox system Why or why not Assume 365 days per year ( 6 points)

Question

i need answer ASAP 3  (a) Edible Foods has annual sales of $520 million per year and has calculated that the collection float is 10 days  If Edible Foods is currently paying 8 5 percent on its line of credit, what amount of interest expense could be saved if the collection float is reduced by 3 days  Assume 365 days per year ( 6 points)  (b) Tamu is considering the implementation of a lockbox collection system for its mid western and western sales regions  Sales in those two regions are 40 percent of Tamu's annual sales of $600 million  The lockbox system will cost $160,000 a year and reduce collection time by 3 days  If Tamu could invest any released funds at 8 percent, should it use the lockbox system  Why or why not  Assume 365 days per year ( 6 points)

Accepted Answer

The Answer is in the image, click to view ...

Question

i need answer ASAP 3. (a) Edible Foods has annual sales of $520 million per year and has calculated that the collection float is 10

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Students also viewed these Finance questions

Question

Question

Question

Question

Question

Question

Question

Question

Question