March 18th, 2019 
admin8A (Lock-box system cost of trade credit)
Question 1
Aqua System Inc. expects to have $25623100 in credit sales during the coming year. Currently all checks are sent to the home office. A proposed lockbox system can eliminate 4 days of float releasing funds which when invested will earn 5.79 percent per year. What annual savings can Aqua System expect if the system is implemented? Use a 365-day year. Round the answer to two decimal places.
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