Finance

/in /by

In today’s fast-paced academic environment, students often find themselves juggling multiple responsibilities, from attending classes and working part-time jobs to participating in extracurricular activities. The demands of modern education can be overwhelming, leaving students in search of effective solutions to manage their academic workload efficiently. One such solution is the use of Nursingpapertutors.com academic writing website. Nursingpapertutors.com academic writing website employ a cadre of experienced and knowledgeable writers who are well-versed in various academic subjects and writing styles. Nursingpapertutors.com professionals bring a wealth of expertise to the table, enabling them to produce well-researched and well-structured papers that meet the academic standards and expectations of students. Their familiarity with diverse subjects ensures that students can receive assistance across a wide spectrum of disciplines, from mathematics to literature, and from nursing to engineering.

 

    1. On a typical day, Park Place Clinic writes $1,000 in checks. It generally takes four days for those checks to clear. Each day the clinic typically receives $1,000 in checks that take three days to clear. What is the clinic receives $1,000 in checks that take three days to clear. What is the clinic’s average net float?

    1. Drugs R Us operates a mail-order pharmaceutical business on the West Coast. The firm receives an average of $325,000 in payments per day. On average, it takes four days for the firm to receive payments, from the time customers mail their checks to the time the firm receives and processes them. A lockbox system that consists of 10 local depository banks and a concentration bank in San Francisco would cost $6,500 per month. Under this system, customer checks would be received at the lockbox locations one day after they are mailed, and the daily total would be wired to the concentration bank at a cost of $9.75 each. Assume that the firm could earn 10 percent on marketable securities and that there are 260 working days and hence 260 transfers from each lockbox location per year.

a.       What is the total annual cost of operating the lockbox system?

b.      What is the dollar benefit of the system to Drugs R Us?

c.       Should the firm initiate the lockbox system?

    1. Langley Clinic, Inc buys $400,000 in medical supplies each year ( at gross price) from its major supplier, consolidated services, which offers Langley terms of 2.5/10, net 45. Currently Langley is paying the supplier the full amount due on Day 45, but it is considering taking the discount, paying on Day 10 and replacing the trade credit with a bank loan that has a 10 percent annual cost.

a.       What is the amount of free trade credit that Langley obtains from consolidated Services? ( assume 360 days per year throughout this problem)

b.      What is the amount of costly trade credit?

c.       What is the approximate annual cost of the costly trade credit?

d.      Should Langley replace its trade credit with the bank loan? Explain your answer

e.      If the bank loan is used, how much of the trade credit should be replaced?

    1. Milwaukee Surgical Supplies, Inc. sells on terms of 3/10, net 30. Gross sales for the year are $1,200,000 and the collections department estimate that 30 percent of the customers pay on the tenth day and take discounts, 40 percent pay on the thirtieth day, and the remaining 30 percent pay, on average, 40 days after the purchase. (assume 360 days per year)

a.       What is the firms average collection period?

b.      What is the firm’s current receivable balance?

c.       What would be the firm’s new receivable balance if Milwaukee Surgical toughened up on its collection policy, with the result that all no discount customers paid on the 30th day?

d.      Suppose that the firms cost of carrying receivable was 8 percent annually. How much would the toughened credit policy save the firms in annual receivables carrying expense? ( assume that the entire amount of receivables had to be financed)

 

One of the significant challenges students face is time management. The demands of coursework, assignments, and exams can create immense pressure, leading to stress and a potential drop in academic performance. Nursingpapertutors.com academic writing website can be a valuable resource for students seeking to balance their responsibilities effectively. By outsourcing some of their academic tasks, students can free up time to focus on studying, participating in meaningful extracurricular activities, or even addressing personal obligations. This improved time management can alleviate the stress associated with academic overload. The ultimate goal of education is to enhance one’s knowledge and skills. Nursingpapertutors.com academic writing websites can play a vital role in achieving this goal by providing students with well-crafted papers that serve as models for their own work. These papers can offer valuable insights into effective research, organization, and writing, thereby empowering students to improve their academic performance over time.

 
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.