Excel Solutions - Chapter 20

Excel Solutions - Chapter 20 - Chapter 20 Problems 1-13,...

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Chapter 20 Problems 1-13, Appendix 1-10 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
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Chapter 20 Question 1 Input Area: Checks received 90 Value of checks $85,000 Days delayed 6 Days per month 30 Output: Average daily float $17,000
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Chapter 20 Question 2 Input Area: Value of checks $25,000 Clearing time 4 Received payment $40,000 Clearing time 2 b. New clearing time 1 Output: a. Disbursement float $100,000 Collection float $(80,000) Net float $20,000 b. Disbursement float $100,000 Collection float $(40,000) Net float $60,000
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Chapter 20 Question 3 Input Area: Clearing time 4 Value of checks per day $9,000 Interest rate 0.025% Days per month 30 Output: a. Collection float $36,000 b. The firm should pay no more than $36,000 to eliminate the float. c. Maximum daily charge $9.00
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Chapter 20 Question 4 Input Area: Check #1 value $16,000 Check #2 value $3,000 Clearing time #1 4 Clearing time #2 5 # of days per month 30 Output: Total float $79,000 Average daily float $2,633.33 Average daily receipts $633.33 Weighted average delay 4.16
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Chapter 20 Question 5 Input Area: Average receipt $80 Decreased collection time 2 # Checks per day 12,000 Interest rate 0.016% Bank fee per day $190 Output: Average daily collections $960,000 PV $1,920,000 Cost $1,187,500 NPV $732,500 The firm should take the lockbox service. Annual savings $115,457.31 Annual cost $71,409.14 Annual net savings $44,048.17
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Chapter 20 Question 6 Input Area: # Checks per day 5,000 % of check #1 65% Value of check #1 $50 Average delay check #1 2 % of check #2 35% Value of check #2 $70 Average delay check #2 $3 d. Interest rate 7% e. Weighted average float 1.50 # of days per month 30 Output: a. Average daily float $23,083 On average, there is $23,083 that is uncollected and not available to the firm. b. Total collections $285,000 Weighted average delay 2.43 Average daily float $23,083 c. The most the firm should pay is the total amount of the average float or $23,083 d. Daily interest rate 0.01854% Daily cost of float $4.28 e. Price to reduce float $14,250
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Chapter 20 Question 7 Input Area: Average # of payments per day 400 Average value of payment $1,400 Variable lockbox fee $0.75 Daily interest rate on MM securities
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Excel Solutions - Chapter 20 - Chapter 20 Problems 1-13,...

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