General Accounting Question 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?

Calculate Daily Sales:Daily sales = $59,000 Calculate the Reduction in Collection Time:Reduction in…

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?