Problem 31-26 Cash management Knob, Incorporated, is a nationwide distributor of furniture hardware. The company...
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Accounting
Problem 31-26 Cash management Knob, Incorporated, is a nationwide distributor of furniture hardware. The company now uses a central billing system for credit sales of $212.40 million annually. First National, Knobs principal bank, offers to establish a new concentration banking system for a flat fee of $190,000 per year. The bank estimates that mailing and collection time can be reduced by four days. Assume a 360-day year.
a. increase in cash balance
b. interest saving
c. annual cost of old system
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