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MLX Has Annual Sales of $320 Million Per Year and Has

Question 43

Multiple Choice

MLX has annual sales of $320 million per year and has calculated that the collection float is 12 days.If MLX is currently paying 9.35 percent on its line of credit, what amount of interest expense could be saved if the collection float is reduced by 3 days? Assume 365 days per year.


A) $249,333
B) $573,808
C) $299,200
D) $245,918

Correct Answer:

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