# finance data bank

Question # 00005293 Posted By: spqr Updated on: 12/13/2013 02:14 PM Due on: 12/15/2013
Subject Finance Topic Finance Tutorials:
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

Tutorials for this Question
1. ## Solution: accounts data bank

Tutorial # 00005115 Posted By: spqr Posted on: 12/13/2013 10:35 PM
Puchased By: 2
Tutorial Preview
Weighted average delay = [(\$64,000/\$296,600)´ 2] + [(\$88,200/\$296,600)´ 3] + [(\$96,500/\$296,600)´ 2] + [(\$47,900/\$296,600)´ 3] = 2.46 days 59. High Brow Express deals strictly with ...
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