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(Accounts receivable collection policy​) The Cowboy Bottling Company will generate ​$16 million in credit sales next...

(Accounts receivable collection policy​) The Cowboy Bottling Company will generate ​$16 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 6 ​days' worth of remittance checks. A recent report from a financial consultant indicated procedures that will enable Cowboy Bottling to reduce processing float by 1 full days. If Cowboy invests the released funds to earn 11 ​percent, what will be the annual​ savings?

The annual savings on the new processing system will be ​$

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jeff jeffy answered 4 months ago
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