What would be the increase in the firms average cash balance, Finance Basics

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What would be the increase in the firms average cash balance

Dexter Instrument Company's sales average $3 million per day.

a. If Dexter could reduce the time between customers' mailing their payments and the funds becoming collected balances by 2.5 days, what would be the increase in the firm's average cash balance?

b. Assuming that these additional funds can be invested in marketable securities to yield 8.5% per annum, determine the annual increase in Dexter's (pretax) earnings.

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Finance Basics: What would be the increase in the firms average cash balance

Reference No:- TGS0727087

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Finance Basics: What would be the increase in the firms average cash balance

Reference No:- TGS0727087

Recent Questions Asked Finance Basics

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