Question
Please answer both questions: Apollo reports that 7 days elapses between the date a customer submits a payment to the date funds become available to
Please answer both questions:
Apollo reports that 7 days elapses between the date a customer submits a payment to the date funds become available to Apollo. Apollos annual sales it $600,000. Determine how much Apollos cash balance increases the time to process payments is reduced by 2 days.
A 2,288
B 3,288
C 4,288
D 5,288
Following the previous question, Apollo has the opportunity to use the additional cash balances to retire short-term debt (to reduce the debt balance). If the short-term debt has an interest rate of 12%, what is the amount that Apollo can save on interest expense?
A 395
B 495
C 595
D 695
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