Crimson Plumbing Supplies expects total sales of $9,000,000 this year. Ten percent of the company's sales are
paid in cash; credit sales are usually paid by check. The average check size is $3,000.
Second National Bank is
offering the company a lock-box system. The fees are $800 per month plus $.60 per check. Short-term
marketable securities are currently earning 8 percent per year. What reduction in check collection time is
necessary for Carrollton Plumbing Supplies to be neither better nor worse off from adopting the proposed
system? Use a 365-day year.
CTIME = reduction in check collection time
Credit sales = (.90)($9,000,
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_____________is a liquidity measure that is calculated by subtracting current assets from current liabilities
Fill in the blank(s) with correct word
Huston Company, a manufacturer of office supplies, provides the following financial information
Pen Division Pencil Division Operating income $100,000 $40,000 Net sales $500,000 $150,000 Total assets at Jan. 1 $580,000 $350,000 Total assets at Dec. 31 $610,000 $300,000 Calculate the return on investment for the Pen Division. (Round your answer to two decimal places.) A) 16.81% B) 12.31% C) 17.24% D) 16.39%
When evaluating credit, a customer who has sufficient disposable income and cash flow to pay off a loan is said to have
A) collateral. B) capacity. C) character. D) creditworthiness.
In order for activities to be useful as schedule building blocks, they should have tangible output that can be verified
Indicate whether the statement is true or false