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please help! Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms . Neon has determined that through the establishment
please help!
Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms Neon has determined that
through the establishment of local collection centers around the country, she can speed up the collection of payments by one and
onehalf days. Furthermore, the cash management department of her bank has indicated to her that she can defer her payments on
her accounts by onehalf day without affecting suppliers. The bank has a remote disbursement center in Florida.
a If Neon Light Company has $ million per day in collections and $ million per day in disbursements hars will the
cash management system free up
Note: Enter your answer in dollars not in millions eg $
Freedup funds
b If Neon Light Company can earn percent per annum on freedup funds, how much will the income be
Note: Enter your answer in dollars not in millions eg $
Interest on freedup cash
c If the total cost of the new system is $ should it be implemented?
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