Osborne Supply Company has credit sales of $2M per year. Collections average $8000 per day. Assume there are 250 working days per year. Osborne plans to reduce internal processing time by 1 day. What would its annual savings be, assuming a 14% cost of funds? Solution

Osborne Supply Company has credit sales of $2M per year. Collections average $8000 per day. Assume there are 250 working days per year. Osborne plans to reduce internal processing time by 1 day. What would its annual savings be, assuming a 14% cost of funds? Solution

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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