None Lamar Lumber Company has sales of $9 million peryear, all on credit terms calling for payment within 30days, and its accounts receivable are $2.25 million.Assume 365 days in the year for your calculations.1. What is Lamar's DSO?2. What would DSO be if all customers paid on time?3. How much capital would be released if Lamar couldtake actions that led to on-time payments?

To solve the questions regarding **Lamar Lumber Company's Days Sales Outstanding (DSO)**, we'll…

Answered: Lamar Lumber Company has sales of $9…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

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Help please
By using a lock box system, a firm is able to reduce its float by 3 days. Given an annual interest rate of 3% and annual collections of $350 million, what is the projected annual interest earned by using the lock box? (Assume a 365-day year.)
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