Hello tutor please provide this question solution financial accounting Rosenthal Design has daily sales of $59,000.The financial management team determined thata lockbox would reduce the collection time by 1.6days. Assuming the company can earn 5.2percent interest per year, what are the savingsfrom the lockbox?

Step 1: Define Collection period of account receivableReceivables are accounts which owe to the…

Answered: Rosenthal Design has daily sales of…

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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Rosenthal Design has daily sales of $59,000. The financial management team determined that a lockbox would reduce the collection time by 1.6 days. Assuming the company can earn 5.2 percent interest per year, what are the savings from the lockbox?