what will be the annual​ savings?

Q: JENNY Company is considering borrowing P800,000 from the bank for less than a year as additional…

A: Simple interest is a quick and easy method of calculating interest charged on a loan. This interest…

Q: The Fierro Corporation has annual credit sales of $6 million.  Current expenses for the collection…

A: Calculation of Incremental profit after tax using excel is as follows:

Q: The firm's average accounts receivable balance is P2.5 million, and they are financed by a bank loan…

A: In the given question, the annual savings in interest cost will be compared with the annual cost of…

Q: The XYZ customer service branch maintains a disbursement account which is funded by the main office.…

A: "Cash management" refers to the optimal use of cash to ensure maximum liquidity and profitability.…

Q: A bank is planning to make a loan of sh.5,000,000 to a firm in the steel industry. It expects to…

A: The risk-adjusted return on capital (RAROC) is a modified return on investment (ROI) metric that…

Q: Atlas Moving and Storage wants to have enough money to purchase a new tractor-trailer in 4 years at…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: A supermarket wants to allocate 1.25% as a bounce to reward the hardworking employees from the total…

A: Bonus % = 1.25% Sales in year 1 = 350,320 Sales in year 2 = 362,320 Annual Increase in sales/bonus =…

Q: DDR Corporation has a 12 percent opportunity cost of funds and currently sells on terms of net/10,…

A: Total amount to be received from the customer after 60 days on term net/10 is as follows: Resultant…

Q: Dome Metals has credit sales of $288,000 yearly with credit terms of net 120 days, which is also the…

A: The net income is the income that is received after deducting all the cost and expense from the…

Q: McDonald's major distribution partner, The Martin-Brower Company, needs at least $1 million to build…

A: The question requires analysis of expenses and income incurred by McDonald's to estimate how much…

Q: Whitmer Inc. sells to customers all over the U.S., and all receipts come in to its headquarters in…

A: Lockbox System - It is a technique of management of mailing float. There are certain advantage of…

Q: ntant and the latter provided a cash budget for the next year. According to the computations, the…

A: Given: To calculate the optimum, average cash balance, conversion number and total cost is given as,

Q: Knob, Inc., is a nationwide distributor of furniture hardware. The company now uses a central…

A: As per the given information: Credit sales - $198.00 million Flat fee of First National - $150,000…

Q: Sexy Inc. makes use of the lockbox system, what would be the net benefit to the company? Use 365…

A: Given, Fixed Fee = P 50,000 Interest Rate = 6%

Q: A bank is planning to make a loan of $25,000,000 to a firm in the steel industry. It expects to…

A: RAROC(Risk-adjusted return on capital) is used to determine the credit risk of loan with the help of…

Q: City Farm Insurance has collection centers across the country to speed up collections. The company…

A: Particulars Formula Cash freed up from Collection = Amount of daily collection X Reduction in…

Q: Franklin Mints, a confectioner, is considering purchasing a new jelly bean-making machine at a cost…

A: IRR is the rate at which NPV of the project is zero.

Q: ntonio is an analyst at Barrilla Group. The firm turns over its inventory 5 times each year. It has…

A: Cash conversion cycle tells that how much period is required to collect money from customer and…

Q: Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 55, and it…

A: Computation of effective cost of bank loan is as follows:Additional credit=8000000365×50…

Q: The firm PAR inc. forecasts monthly disbursements of $ 75,000 over the next year. The firm invests…

A: Data given: Monthly requirement of cash   = $75,000. Fixed Transaction cost               = $150…

Q: Data on Nathan Enterprises has determined that it needs Php 7.8 million in cash per week. Data on…

A: Economic order quantity model is that inventory model which is used to order the quantity of…

Q: Enticement Co currently expects sales of $50,000 a month. Variable costs of sales are $40,000 a…

A: In the purview of the question, we are required to compute the increase in accounts receivable,…

Q: Paradise Retailers, Inc. (PRI) determined that $1,500,000 is needed for cash transactions made…

A: Baumol model is the cash management model that helps in managing the excess funds by using optimum…

Q: Tracy Lee, a Capital Expenditure Manager for Ho-Mei Food Manufacturing, knows that her company is…

A: 01-12Months  $     60,000.00 13-24Months  $   1,00,000.00 Current Value in Account  $…

Q: Eaglet Company has a 12 percent opportunity cost of funds and currently sells on terms of net/10,…

A: Total amount to be received from the customer after 60 days on term net/10 is as follows: Resultant…

Q: Beth's Society Inc., has collection centers across the country to speed up collections. The company…

A: a.Freed up cash = P4 x 2.5 + P3 x 1.5 = P14.5 million(This amount will be available throughout the…

Q: A company spends on average €75,000 per week to pay its bills and maintains a lower cash balance…

A: Required:The optimum initial cash balance based on the BAT model.

Q: It typically takes Law Corporation 8 days to receive and deposit customer remissions. Law is…

A: Days to receive and deposit customer remissions is 8 days Reduction in Float time is 5 days…

Q: a company could raise f

A:

Q: A bank is planning to make a loan of $25,000,000 to a firm in the steel industry. It expects to…

A: The risk-adjusted return on capital (RAROC) is a risk-adjusted measure of investment return. It…

Q: the bank should make the loan.

A: Solution: RAROC model: “Risk-adjusted return on capital” A model evaluates the expected return on…

Q: dbox's Company has cash needs of P5 million per month. If Sandbox needs more cash, it can sell…

A: To determine the transactions costs (per month) associated with the cash infusions we first need to…

Q: Dome Metals has credit sales of $450,000 yearly with credit terms of net 45 days, which is also the…

A: Credit management is considered to be important part. Discount are offered in order to receive…

Q: Assume that the operation of your business resulted in sales of $730,000 last year. Year-end…

A: Factoring: Factoring is a process by which a company sells its accounts receivables to a third party…

Q: Data on Nathan Enterprises has determined that it needs Php 7.8 million in cash per week. If Data on…

A: EOQ- Economic Order Quantity is the analysis tool which helps to determine the ideal order quantity…

Q: It is assumed that the Cost of equity and rate of return are both constant under Walter’s Model of…

A: Since you have asked multiple questions, we will solve only one question for you as per Bartleby's…

Q: A business plans to use £20,000 of cash during the forthcoming year. It holds most of its cash in a…

A: Given the following information: Planned payments for the forthcoming time period: $20,000 Cost of…

Q: Assume the operation of your business resulted in sales of $730,000 last year. Year-end receivables…

A: Note - Since you have posted a question with multiple subparts, we will solve the first three…