A recent report from a financial consultant indicated


(Accounts receivable collection policy) The Cowboy Bottling Company will generate $20 million in credit sales next year. Collection of these credit sales will occur evenly over this period. The firm's employees work 300 days a year. Currently, the firm's processing system ties up 44 days' worth of remittance checks. A recent report from a financial consultant indicated procedures that will enable Cowboy Bottling to reduce processing float by 22 full days. If Cowboy invests the released funds to earn 11 percent, what will be the annual savings?

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Financial Management: A recent report from a financial consultant indicated
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