finance data bank
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

Rating:
5/
Solution: accounts data bank