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Question;50. A firm has $16,718 in outstanding checks that have;not cleared the bank. The firm also has $13,450 in deposits that have been;recorded by the firm but not by the bank. The current available balance is;$11,407. What is the status of the net float?;A. net collection float of $8,138;B. net collection float of $2,043;C. net collection float of $13,450;D. net disbursement float of $3,268;E. net disbursement float of $5,311;51. Your firm generally receives 4 checks a month. The;check amounts and the collection delay for each check is shown below. Given;this information what is the amount of the average daily float? Assume a 30 day;month.;A. $1,070;B. $2,333;C. $2,640;D. $2,900;E. $3,416;52. Hoyes Lumber generally receives 3 checks a month.;The check amounts and the collection delay for each check are shown below.;Given this information, what is the amount of the average daily float? Assume;each month has 30 days.;A. $1,386.67;B. $1,407.19;C. $4,750.00;D. $6,833.33;E. $6,933.33;53. The Blue Star generally receives only 3 checks a;month. The check amounts and the collection delay for each check are shown;below. Given this information, what is the amount of the average daily float?;Assume every month has 30 days.;A. $971.43;B. $1,456.67;C. $3,351.33;D. $5,666.67;E. $6,800.00;54. The Food Wholesaler generally receives 4 checks a;month. The check amounts and the collection delay for each check are shown;below. Given this information, what is the amount of the average daily float?;Assume every month has 30 days.;A. $3,963.89;B. $21,750.00;C. $22,236.67;D. $28,133.33;E. $35,675.00;55. Hot Tub Builders sells to three retail outlets.;Each retailer pays once a month in the amounts shown below. The collection;delay associated with each payment is also given below. What is the amount of;the average daily receipts if you assume each month has 30 days?;C. $2,983.33;D. $6,166.67;E. $6,860.00;A. $2,389.70;B. $8,190.00;C. $14,608.13;D. $23,896.97;E. $81,900.00;56. Atlas Builders deals strictly with five customers.;The average amount each customer pays per month along with the collection delay;associated with each payment is shown below. Given this information, what is;the amount of the average daily receipts? Assume every month has 30 days.;A. $1,143.33;B. $2,546.67;57. National Exporters deals strictly with two customers. The average;amount each customer pays per month along with the collection delay associated;with each payment is shown below. Given this information, what is the amount of;the average daily receipts? Assume that every month has 30 days.;A. $2,653.33;B. $3,006.33;C. $5,306.67;D. $7,811.67;E. $8,600.00;58. Cross Country Trucking provides transportation;services exclusively for four customers. The average amount each customer pays;per month along with the collection delay associated with each payment is shown;below. Given this information, what is the weighted average delay? Assume each;month has 30 days.;A. 2.11 days;B. 2.27 days;C. 2.46 days;D. 2.50 days;E. 2.78 days;59. High Brow Express deals strictly with two;customers. The average amount each customer pays per month along with the;collection delay associated with each payment is shown below. Given this;information, what is the weighted average delay? Assume that every month has 30;days.;A. 1.79 days;B. 1.84 days;C. 2.00 days;D. 2.07 days;E. 2.16 days;60. The Metallurgical Specialty Co. deals strictly;with four customers. The average amount each customer pays per month along with;the collection delay associated with each payment is shown below. Given this;information, what is the weighted average delay? Assume each month has 30 days.;A. 1.98 days;B. 2.04 days;C. 2.09 days;D. 2.16 days;E. 2.23 days;61. On an average day, Goose Down Feathers receives;$2,400 in checks from customers. These checks clear the bank in an average of;1.7 days. The applicable daily interest rate is 0.04 percent. What is the;present value of the float? Assume each month has 30 days.;A. $115.20;B. $618.40;C. $2,400.00;D. $4,080.00;E. $4,256.50;62. On an average day, Town Center Hardware receives;$2,420 in checks from customers. These checks clear the bank in an average of;2.1 days. The applicable daily interest rate is 0.025 percent. What is the;maximum amount this store should pay to completely eliminate its collection;float? Assume each month has 30 days.;A. $1,152.38;B. $1,288.15;C. $2,109.16;D. $4,637.33;E. $5,082.00;63. On an average day, your firm receives $11,800 in;checks from customers. These checks clear the bank in an average of 2.1 days.;The applicable daily interest rate is 0.015 percent. What is the highest daily;fee your firm should pay to completely eliminate the collection float? Assume;each month has 30 days.;A. $3.42;B. $3.72;C. $17.78;D. $34.18;E. $37.20;64. On an average day, Wilson & Wilson receives;$7,800 in checks from customers. These checks clear the bank in an average of;1.7 days. The applicable daily interest rate is 0.022 percent. What is the;highest daily fee this firm should pay to completely eliminate its collection;float? Assume each month has 30 days.;A. $1.72;B. $2.92;C. $17.20;D. $24.30;E. $29.17;65. Your average customer is located 4.3 mailing days;away from your firm. You have determined that, on average, it is taking your;staff 1.5 days to process payments received from customers. In addition, it;takes an average of 2.2 days for your funds to be available for use once you;have made your bank deposit. What is your firm's collection time?;A. 2.2 days;B. 3.7 days;C. 4.3 days;D. 5.8 days;E. 8.0 days;66. It takes your firm 4.5 days to prepare and mail;out all the monthly statements to your customers. On average, the mail time;between your firm and your customers is 2.6 days. Customer checks take an;average of 1.8 days to clear the bank. You have determined that your total;average collection time is 6.1 days. How long, on average, does it take your;firm to process the payments from customers?;A. 1.7 days;B. 2.6 days;C. 4.4 days;D. 4.8 days;E. 6.2 days;67. Currently, your firm requires 2 days to process;the checks which customers mail in to pay for their credit purchases. The;average mail time associated with these payments is 2.3 days and the check;clearing time is 2.1 days. If your firm adopts a lockbox system, the mail time;will be cut in half. In addition, if employees are reassigned, checks could be;processed the same day they are received. How long will your collection time be;if both the lockbox system and the job reassignments are implemented?;A. 3.85 days;B. 4.10 days;C. 4.25 days;D. 4.40 days;E. 4.55 days;68. You are considering implementing a lockbox system;for your firm. The system is expected to reduce the average collection time by;1.2 days. On an average day, your firm receives 320 checks with an average;value of $99 each. The daily interest rate on Treasury bills is 0.014 percent.;What is the anticipated amount of the daily savings if this system is;implemented?;A. $2.61;B. $3.29;C. $4.45;D. $5.32;E. $5.78;69. Roger's Distributors receives an average of 216;checks a day. The average amount per check is $629. The firm is considering a;lockbox system which it anticipates will reduce the average collection time by;1.5 days. The daily interest rate on Treasury bills is 0.011 percent. What is;the amount of the expected daily savings of the lockbox system?;A. $2.04;B. $6.92;C. $14.95;D. $18.10;E. $22.42;70. Hand Tools, Inc. receives an average of 611 checks;a day. The average amount per check is $425. The firm is considering a lockbox;system which it anticipates will reduce the average collection time by 1 day.;The bank charges $0.275 a check for this service. The daily interest rate on;Treasury bills is 0.013 percent. What is the average daily cost of the lockbox;system?;A. $31.16;B. $54.19;C. $168.03;D. $180.11;E. $199.19;71. You are considering implementing a lockbox system;for your firm. The system is expected to reduce the average collection time by;1.3 days. On an average day, your firm receives 136 checks with an average;value of $219 each. The daily interest rate on Treasury bills is 0.021 percent.;The bank charge per check is $0.22. What is the anticipated daily cost of the;lockbox system?;A. $3.48;B. $6.25;C. $12.60;D. $29.92;E. $36.17;72. You are considering implementing a lockbox system;for your firm. The system is expected to reduce the average collection time by;2.8 days. On an average day, your firm receives 2,419 checks with an average;value of $1,287 each. The daily interest rate on Treasury bills is 0.016;percent. The bank charge per check is $0.30. What is the net present value of;this lockbox arrangement?;A. -$4,535,625;B. -$2,611,575;C. $187,419;D. $4,181,483;E. $13,252,733;73. Rosewell International receives an average of 268;checks a day with an average amount per check of $820. The firm is considering;a lockbox system which it anticipates will reduce the average collection time;by 1.4 days. The bank charges $0.21 a check for this service. The daily;interest rate on Treasury bills is 0.02 percent. What is the net present value;of this lockbox arrangement?;A. -$61,640;B. -$26,264;C. $26,264;D. $30,820;E. $61,640;74. The Eliot Co. needs $185,000 a week to pay bills.;The standard deviation of the weekly disbursements is $17,600. The firm has;established a lower cash balance limit of $75,000. The applicable interest rate;is 5.5 percent and the fixed cost of transferring funds is $47. Based on the;BAT model, what is the optimal initial cash balance?;A. $90,668;B. $97,515;C. $104,141;D. $128,224;E. $136,509

 

Paper#51111 | Written in 18-Jul-2015

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