Business, 29.11.2019 03:31 manuellopez1981

Fisher-gardner corporation (fgc) began operations 5 years ago as a small firm serving customers in the chicago area. however, its reputation and market area grew quickly. today fgc has customers all over the united states. despite its broad customer base, fgc has maintained its headquarters in detroit, and it keeps its central billing system there. on average, it takes 7 days from the time customers mail in payments until fgc can receive, process, and deposit them. fgc would like to set up a lockbox collection system, which it estimates would reduce the time lag from customer mailing to deposit by 3 days-bringing it down to 4 days. fgc receives an average of $2,500,000 in payments per day.
1. how much free cash would fgc generate if it implemented the lockbox system? round your answer to the nearest dollar. would this be a one-time cash flow or a recurring one, assuming the company ceases to grow?
2. how would growth affect your answer? if the firm grows, cash flow. if fgc has an opportunity cost of 7%, how much is the lockbox system worth on an annual basis? round your answer to the nearest dollar.
3. what is the maximum monthly charge fgc should pay for the lockbox system? round your answer to the nearest cent. $

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 06:00

Transactions on april 1 of the current year, andrea byrd established a business to manage rental property. she completed the following transactions during april: opened a business bank account with a deposit of $45,000 from personal funds. purchased office supplies on account, $2,000. received cash from fees earned for managing rental property, $8,500. paid rent on office and equipment for the month, $5,000. paid creditors on account, $1,375. billed customers for fees earned for managing rental property, $11,250. paid automobile expenses for month, $840, and miscellaneous expenses, $900. paid office salaries, $3,600. determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450. withdrew cash for personal use, $2,000. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300)

Answers: 1

Answer

Business, 22.06.2019 10:10

Rats that received electric shocks were unlikely to develop ulcers if the

Answers: 1

Answer

Business, 22.06.2019 11:00

The following transactions occurred during july: received $1,000 cash for services provided to a customer during july. received $4,000 cash investment from bob johnson, the owner of the business received $850 from a customer in partial payment of his account receivable which arose from sales in june. provided services to a customer on credit, $475. borrowed $7,000 from the bank by signing a promissory note. received $1,350 cash from a customer for services to be rendered next year. what was the amount of revenue for july?

Answers: 1

Answer

Business, 22.06.2019 18:00

Bond j has a coupon rate of 6 percent and bond k has a coupon rate of 12 percent. both bonds have 14 years to maturity, make semiannual payments, and have a ytm of 9 percent. a. if interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?

Answers: 2

Answer

You know the right answer?

Fisher-gardner corporation (fgc) began operations 5 years ago as a small firm serving customers in t...

Questions