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Jester, Inc

Question 42

Multiple Choice

Jester, Inc.has annual sales of $434 million.An average of 12 days elapses between the time a customer mails its payment and the funds are available to Jester.What is the increase in the average cash balance if the use of a lock box system is believed to reduce the collection time by 4 days?


A) $4.76 million
B) $49.6 million
C) $633,640
D) $9.5 million

Correct Answer:

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