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Publish On: 2018-12-07

Andy More

Total Post: 752

Question: John Ferrer Tools Limited has annual sales of $ 2.65 crore. The company has investment opportunities in the money market to earn a return of 16 percent per annum. If the company could reduce its float by 2 days, what would be the company’s total return?

Reply On: 2013-06-25

Priancka

Total Post: 8

ANS: John Ferrer Tools Limited has annual sales of $ 2.65 crore. The company has investment opportunities in the money market to earn a return of 16 percent per annum. If the company could reduce its float by 2 days, what would be the company’s total return?

Sales per day = $ 2.65 crore/365

= $ 72,603 (assuming 365 days/years)

Total returns = 72,603 × 0.16 days = $ 23,233


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