a. Company's float $60,000 b. Maximum payment c. Maximum daily fee Purple Feet Wine, Inc., receives...
|
|||||||||||||
|
Purple Feet Wine, Inc., receives an average of $20,000 in checks per day. The delay in clearing is typically three days. The current interest rate is .017 percent per day. |
| a. | What is the company's float? |
| b. | What is the most the company should be willing to pay today to eliminate its float entirely? |
| c. | What is the highest daily fee the company should be willing to pay to eliminate its float entirely? (Round your answer to 2 decimal places, e.g., 32.16.) |
Homework Answers
I have answered the question below
Please up vote for the same and thanks!!!
Do reach out in the comments for any queries
Answer:
A) Company's float is given by the formula => average checks per day* number of days delay in clearing the check
= $20000*3= $6000
B) To eliminite its float the maximum amount Purple Fleet should be willing to pay is the Company's float which is $60000
C) Highest daily fee company should be willing to pay to eliminate its float is given by the formula company's float* intrest per day= 0.00017*60000=$ 10.20
Add Answer to:
a.
Company's float
$60,000
b.
Maximum payment
c.
Maximum daily fee
Purple Feet Wine, Inc., receives...
Purple Feet Wine, Inc., receives an average of $14,500 in checks per day. The delay in...
Purple Feet Wine, Inc., receives an average of $14,500 in checks per day. The delay in clearing is typically three days. The current interest rate is .017 percent per day. a. What is the company's float? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Company's float $ b. What is the most the company should be willing to pay today to eliminate its float entirely? (Do not round intermediate calculations and round...
The firm receives an average of $20,000 in checks per day. The weighted average delay in...
The firm receives an average of $20,000 in checks per day. The weighted average delay in clearing the checks received is 3 days. Meanwhile, the firm writes an average of $17,000 in checks to pay its suppliers per day. The usual clearing time for the checks the firm wrote is 2 days. The current interest rate is 0.015 percent per day. What is the most the firm should be willing to pay today (in a lump sum today) to eliminate...
The firm receives an average of $20,000 in checks per day. The weighted average delay in...
The firm receives an average of $20,000 in checks per day. The weighted average delay in clearing the checks received is 3 days. Meanwhile, the firm writes an average of $17,000 in checks to pay its suppliers per day. The usual clearing time for the checks the firm wrote is 2 days. The current interest rate is 0.015 percent per day. What is the most the firm should be willing to pay today (in a lump sum today) to eliminate...
The firm receives an average of $20,000 in checks per day. The weighted average delay in...
The firm receives an average of $20,000 in checks per day. The weighted average delay in clearing the checks received is 3 days. Meanwhile, the firm writes an average of $17,000 in checks to pay its suppliers per day. The usual clearing time for the checks the firm wrote is 2 days. The current interest rate is 0.015 percent per day. What is the most the firm should be willing to pay today (in a lump sum today) to eliminate...
The firm receives an average of $20,000 in checks per day. The weighted average delay in...
The firm receives an average of $20,000 in checks per day. The weighted average delay in clearing the checks received is 3 days. Meanwhile, the firm writes an average of $17,000 in checks to pay its suppliers per day. The usual clearing time for the checks the firm wrote is 2 days. The current interest rate is 0.015 percent per day. What is the most the firm should be willing to pay today (in a lump sum today) to eliminate...
5. Umbrellas Unlimited receives an average of 120 payments each day. The average payment amount is...
5. Umbrellas Unlimited receives an average of 120 payments each day. The average payment amount is $40. The delay in processing and clearing averages 3 days and the daily applicable interest rate is .014%. What is the highest daily fee the firm should pay to completely eliminate its float?
A mail-order firm processes 5,600 checks per month. Of these, 60 percent are for $46 and...
A mail-order firm processes 5,600 checks per month. Of these, 60 percent are for $46 and 40 percent are for $78. The $46 checks are delayed three days on average; the $78 checks are delayed four days on average. Assume 30 days in a month. a-1. What is the average daily collection float? (Do not round intermediate calculations.) Average daily collection float a-2. How do you interpret your answer? (Do not round intermediate calculations.) On average, there is that is...
Problem 27-6 Using Weighted Average Delay A mail-order firm processes 6,300 checks per month. Of these, 70 percent are for $53 and 30 percent are for $85. The $53 checks are delayed two days on avera...
Problem 27-6 Using Weighted Average Delay A mail-order firm processes 6,300 checks per month. Of these, 70 percent are for $53 and 30 percent are for $85. The $53 checks are delayed two days on average; the $85 checks are delayed three days on average. Assume 30 days per month a-1.What is the average daily collection float? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Average daily collection float 210 a-2. How...
A mail-order firm processes 4,500 checks per month. Of these, 60 percent are for $35 and...
A mail-order firm processes 4,500 checks per month. Of these, 60 percent are for $35 and 40 percent are for $67. The $35 checks are delayed two days on average; the $67 checks are delayed three days on average. Assume 30 days per month. a-1. What is the average daily collection float? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a-2. How do you interpret your answer? b-1. What is the weighted...
It takes Cookie Cutter Modular Homes, Inc., about six days to receive and deposit checks from...
It takes Cookie Cutter Modular Homes, Inc.,
about six days to receive and deposit checks from customers. The
company’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 three days total. Average
daily collections are $175,000, and the required rate of return is
4 percent per year. Assume 365 days per year.
It takes Cookie Cutter Modular Homes, Inc., about six days to...
A mail-order firm processes 5,600 checks per month. Of these, 60 percent are for $46 and 40 percent are for $78. The $46 checks are delayed three days on average; the $78 checks are delayed four days on average. Assume 30 days in a month. a-1. What is the average daily collection float? (Do not round intermediate calculations.) Average daily collection float a-2. How do you interpret your answer? (Do not round intermediate calculations.) On average, there is that is...
Problem 27-6 Using Weighted Average Delay A mail-order firm processes 6,300 checks per month. Of these, 70 percent are for $53 and 30 percent are for $85. The $53 checks are delayed two days on average; the $85 checks are delayed three days on average. Assume 30 days per month a-1.What is the average daily collection float? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Average daily collection float 210 a-2. How...
A mail-order firm processes 4,500 checks per month. Of these, 60 percent are for $35 and 40 percent are for $67. The $35 checks are delayed two days on average; the $67 checks are delayed three days on average. Assume 30 days per month. a-1. What is the average daily collection float? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a-2. How do you interpret your answer? b-1. What is the weighted...
It takes Cookie Cutter Modular Homes, Inc.,
about six days to receive and deposit checks from customers. The
company’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 three days total. Average
daily collections are $175,000, and the required rate of return is
4 percent per year. Assume 365 days per year.
It takes Cookie Cutter Modular Homes, Inc., about six days to...
Most questions answered within 3 hours.
-
Phosphorous + bromine = phosphorous tribromide. If 35.0 g of
bromine are reacted and 27.9 grams...
asked 1 minute ago -
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 3 hours ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 3 hours ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 3 hours ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 3 hours ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 4 hours ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 3 hours ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 4 hours ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 4 hours ago -
Create a button in Swift (Xcode) that will create a charge,
create a charge using Stripe's...
asked 4 hours ago -
The reaction rate of CO and NO2 in the reaction
CO(g) + NO2(g) → CO2(g) +...
asked 4 hours ago -
Imagine that a chemist puts 6.40 mol each of
C3H8 and O2 in a 1.00-L container...
asked 4 hours ago