You are given a choice of taking the simple interest on 100,000 invested for 2 years

1)

The Arizona Bay Corporation sells on credit terms of net 25. Its accounts are, on average, 11 days past due.

Required:
If annual credit sales are $8 million, what is the company’s balance sheet amount in accounts receivable? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))

Average accounts receivables ???

2)

Your neighbor goes to the post office once a month and picks up two checks, one for $11,000 and one for $6,000. The larger check takes 5 days to clear after it is deposited; the smaller one takes 7 days. Assume 30 days per month.

Required:
(a)
What is the total float for the month? (Do not include the dollar sign ($).)

Total float $ ???

(b)
What is the average daily float? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))

Average daily float $ ???

(c)
What are the average daily receipts and weighted average delay? (Do not include the dollar sign ($). Round your answers to 2 decimal places. (e.g., 32.16))

Average daily receipts $ ???
Weighted average delay ??? days

3)

It takes Cookie Cutter Modular Homes, Inc., about 9 days to receive and deposit checks from customers. Cookie Cutter’s management is considering a lockbox system to reduce the firm’s collection times. It is expected that the lockbox system will reduce receipt and deposit times to 4 days total. Average daily collections are $99,000, and the required rate of return is 8 percent per year.

Requirement 1:
What is the reduction in outstanding cash balances as a result of implementing the lockbox system? (Do not include the dollar sign ($).)

Cash balance reduction $ ???

Requirement 2:
What is the dollar return that could be earned on these savings? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))

Daily dollar return $ ???

Requirement 3:
(a)
What is the maximum monthly charge Cookie Cutter should pay for this lockbox system if the payment is due at the end of the month? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))

End of the month payments $ ???

(b)
What is the maximum monthly charge Cookie Cutter should pay for this lockbox system if the payment is due at the beginning of the month? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))

Beginning of the month payments $ ???

4)

The Trektronics store begins each week with 250 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $48 per year and the fixed order cost is $126.

Required:
(a)
What is the total carrying cost? (Do not include the dollar sign ($).)

Carrying costs $ ???

(b)
What is the restocking cost? (Do not include the dollar sign ($).)

Restocking costs $ ???

(c)
Calculate the economic order quantity. (Round your answer to 2 decimal places. (e.g., 32.16))

EOQ ???

(d)
Calculate the number of orders per year. (Round your answer to 2 decimal places. (e.g., 32.16))

Number of orders per year

(e)
Should Trektronics increase or decrease its order size?

PASSWORD: SHIV