Your average customer is located 5 mailing days away from your firm. You have determined that on average it is taking your firm 2 days to process payments received from customers. In addition, it takes 3 days for your funds to be available for use once you have made your bank deposit. What is your firm's collection time?

Question

Quizplus · Accepted Answer

The firm's collection time is the sum of the mailing days (5 days), processing time (2 days), and the time for funds to be available (3 days), totaling 10 days.

Your Average Customer Is Located 5 Mailing Days Away from Your