Copy of FCF 9th edition Chapter 19

# Copy of FCF 9th edition Chapter 19 - Chapter 19 Problems...

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Chapter 19 Problems 1-12, Appendix 1-10 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak" and "Solver Add-In."

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Chapter 19 Question 1 Input Area: Checks received 80 Value of checks \$156,000 Days delayed 4 Days per month 30 Output: Average daily float \$20,800.00
Chapter 19 Question 2 Input Area: Value of checks \$14,000 Clearing time 4 Received payment \$26,000 Clearing time 2 b. New clearing time 1 Output: a. Disbursement float \$56,000 Collection float \$(52,000) Net float \$4,000 b. Disbursement float \$56,000 Collection float \$(26,000) Net float \$30,000

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Chapter 19 Question 3 Input Area: Value of checks per day \$19,000 Clearing time 3 Interest rate 0.019% Days per month 30 Output: a. Collection float \$57,000 b. The firm should pay no more than \$57,000 to eliminate the float. c. Maximum daily charge \$10.83
Chapter 19 Question 4 Input Area: Check #1 value \$17,000 Check #2 value \$6,000 Clearing time #1 4 Clearing time #2 5 # of days per month 30 Output: Total float \$98,000 Average daily float \$3,266.67 Average daily receipts \$766.67 Weighted average delay 4.26

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Chapter 19 Question 5 Input Area: Average receipt \$108 Decreased collection time 2 # Checks per day 8,500 Interest rate 0.016% Bank fee per day \$225 Output: Average daily collections \$918,000 PV \$1,836,000 Cost \$1,406,250 NPV \$429,750.00 The firm should take the lockbox service. Annual savings \$110,406.05 Annual cost \$84,563.46 Annual net savings \$25,842.59
Chapter 19 Question 6 Input Area: # Checks per day 5,300 % of check #1 60% Value of check #1 \$55 Average delay check #1 2 % of check #2 40% Value of check #2 \$80 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 \$28,620 On average, there is \$28,620 that is uncollected and not available to the firm. b.

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Copy of FCF 9th edition Chapter 19 - Chapter 19 Problems...

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