Exam 27: Cash Management

Top Notch Tools has average daily receipts of $3,600.These receipts are available after 1.5 days on average.What is the NPV of eliminating the float if the cost to do so is $1,500?

The difference between available cash and book cash is called:

Who deposits the checks into the payee's account when those checks are mailed to a traditional lockbox?

Processing float

Explain repurchase agreements and the role they can play in a firm's everyday operations.

The 2017 Tax Cuts and Jobs Act set the dividend exclusion for dividend income received by corporate shareholders at ________ percent (or more).

Which one of the following is the most marketable and has the least default risk?

During the month Leslie's receives four checks in the amounts of $100,$325,$200,and $500.They are delayed for 1.6 days,2.1 days,2.6,and 1 day,respectively.What is the average daily collection float? Assume a 30-day month.

On an average day,DDL Enterprises writes checks totalling $1,500.These checks take an average of 5 days to clear.On an average day,DDL receives checks totalling $1,700 which take 4 days to clear.The cost of debt is 7.5 percent.What is the firm's disbursement float?

Probably the most sensible cash management policy would be to maintain:

Fly-By-Night Airlines currently has $2.4 million on deposit with its bank.It also has a book balance of $2.4 million.What will be its bank and book balances as soon as it writes a check for $1.1 million to pay its fuel bill?

All the following can create disbursement float except the:

Availability float Collection float includes:

Collection float includes:

Which one of the following statements concerning zero-balance accounts is false?

Which one of these probably has reduced collection time the most?

Prime Bank is offering your company the use of their lockbox services.They estimate that you can reduce your average mail time by 1.5 days and they can save you a combined clearing and processing time of 1 day by putting the checks into the clearing system sooner.Your firm receives 198 checks a day with an average value of $2,300 each.The current T-Bill rate is .011 percent per day.Assume a 365-day year.Prime Bank will charge your firm an annual fee of $27,500 plus $.20 per check.What is the annual net savings from installing this system?

One primary reason concentration bank accounts are established is to:

Processing float

The fastest but most expensive way for a firm to transfer surplus funds from the local deposit bank to the concentration bank is: