MGMT 3320 Lecture Notes - Lecture 7: Accounts Receivable
12 Jan 2018
School
Department
Course
Professor
Chapter 7
7-7 Your Banker
$305,000 daily receipts x 3 days speed up = $915,000
Less compensating balance requirement 75,000
Net funds freed up $840,000
Opportunity benefit (cost) of funds at 9%
Annual benefit 75,600
Annual new bank fee 52,500
Annual savings from concentration banking system $ 23,100
Accept the package!
7-10 Canmex Inc.
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7-20 Henderson Office Supply
b.
000,12$
5
000,60$ receivable accounts in Investment
c. Added sales $ 60,000
Accounts uncollectible (8% of new sales) – 4,800
Annual incremental revenue 55,200
Collection costs (5% of new sales) – 3,000
Production and selling costs (78% of new sales) – 46,800
Annual income before taxes $ 5,400
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