This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is a lockbox arrangement, and how does its use reduce a firm's float? What will be an ideal ... (Read 65 times)

Tirant22

  • Hero Member
  • *****
  • Posts: 532
on: Jul 10, 2018
What is a lockbox arrangement, and how does its use reduce a firm's float?
 
  What will be an ideal response?

Question 2

The Native Industries, Inc is going to issue 180-day commercial paper to raise 25 million. It
  anticipates a discounted interest rate of 13 percent, and dealer placement costs of approximately
  60,000.
 
  What is the effective annual cost of credit to Native Industries?
  A) 13.46 B) 15.38 C) 14.06 D) 14.45


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ebonylittles

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jul 10, 2018
Answer to Question 1

The lockbox arrangement is based on a simple procedure. The firm's customers are instructed to mail their remittance
checks not to company headquarters or regional offices, but to a numbered post office box. The bank that is providing
the lockbox service is authorized to open the box, collect the mail, process the checks, and deposit the checks directly
into the company's account. Such a system speeds up the conversion of receipts into usable funds by reducing both the
mail and processing float of payments.

Answer to Question 2

D


Tirant22

  • Member
  • Posts: 532
Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

nothere

  • Member
  • Posts: 324
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Proper placement and monitoring of an automatic blood pressure cuff will reduce the risk of injury o Proper placement and monitoring of an automatic blood pressure cuff will reduce the risk of injury o
Rebound Tenderness, Apply Firm Pressure to the Abdomen Rebound Tenderness, Apply Firm Pressure to the Abdomen
Abdominal thrusts are delivered with a firm thrust into the patient’s abdomen with an upward ... Abdominal thrusts are delivered with a firm thrust into the patient’s abdomen with an upward ...
An antiparallel arrangement of strands forming b-sheets An antiparallel arrangement of strands forming b-sheets
How does PCA reduce the dimension of a statistical problem? How do you select the reduced ... How does PCA reduce the dimension of a statistical problem? How do you select the reduced ...
Video: Bone Growth and Remodeling

For a complete list of videos, visit our video library