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(solved)It takes cookie cutter modular homes Inc about six days to receive and deposit checks from customers. Cooke Cutter’s management is considering a lock…. . . . .

It takes cookie cutter modular homes Inc about six days to receive and deposit checks from customers. Cooke Cutter’s management is considering a lock box system to reduce the firm collection times. It is expected that the lockbox system will reduce receipt and deposit times to three days total. Average daily collections are 145,000 and the required rate of return is 9 percent per year.a. What is the reduction in outstanding cash balance as result of implementing the lockbox system?b. What is the dollar return that could be earned on these savings?c. What is the maximum monthly charge cookies cutter should pay for this lockbox system if the payment is due at the end of the month? What if the payment is due at the beginning of the month?

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Answer to It takes cookie cutter modular homes Inc about six days to receive and deposit checks from customers. Cooke Cutter’s management is considering a lock… . . .

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