17-2. NorthAm Trucking is a long-haul trucking company that serves customers all across the continental United States and parts of Canada and Mexico. At present, all billing activities-from preparation to collection-are handled by staff at corporate headquarters in Bloomington, Indian. Payments are recorded and deposits are made once a day in the firm’s bank Hoosier National. You have been hired to recommend ways to reduce collection float and thereby generate costs savings., ,a. Suggest and explain at least three specific ways that NorthAm could reduce its collection float.,,b. Assume you preferred recommendation will cut the collection by four days. NorthAm bills $108 million per year. If collections are evenly distributed throughout a 365-day year and if the firm’s cost of short-term financing is 8%, what savings could be achieved by implementing the suggestion?,,,c. Suppose the annual cost of implementing your recommendations is $100,000. In view of your answer to part (b), should NorthAm implement it?,
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