财务管理基础-第七章-课后题答案-斯坦利.B.布洛克.docVIP

Chapter7

Problems

1. CityFarmInsurancehascollectioncentersacrossthecountrytospeedupcollections.Thecompanyalsomakesitsdisbursementsfromremotedisbursementcenters.Thecollectiontimehasbeenreducedbytwodaysanddisbursementtimeincreasedbyonedaybecauseof?thesepolicies.Excessfundsarebeinginvestedinshort-terminstrumentsyielding12?percentperannum.

a. IfCityFarmhas$5millionperdayincollectionsand$3millionperdayindisbursements,howmanydollarshasthecashmanagementsystemfreedup?

b. HowmuchcanCityFarmearnindollarsperyearonshort-terminvestmentsmadepossiblebythefreed-upcash?

7-1. Solution:

CityFarmInsurance

a. $5,000,000dailycollections

×2.0daysspeedup= $10,000,000additionalcollections

$3,000,000dailydisbursements

×1.0daysslowdown= $3,000,000delayeddisbursements

$13,000,000freed-upfunds

b.

2. NicholasBirdcageCompanyofHollywoodshipscagesthroughoutthecountry.Nicholashasdeterminedthatthroughtheestablishmentoflocalcollectioncentersaroundthecountry,hecanspeedupthecollectionofpaymentsbyoneandone-halfdays.Furthermore,thecashmanagementdepartmentofhisbankhasindicatedtohimthathecandeferhispaymentsonhisaccountsbyone-halfdaywithoutaffectingsuppliers.ThebankhasaremotedisbursementcenterinFlorida.

a. Ifthecompanyhas$4millionperdayincollectionsand$2millionperdayindisbursements,howmanydollarswillthecashmanagementsystemfreeup?

b. Ifthecompanycanearn9percentperannumonfreed-upfunds,howmuchwilltheincomebe?

c. Iftheannualcostofthenewsystemis$700,000,shoulditbeimplemented?

7-2. Solution:

NicholasBirdcageCompanyofHollywood

a. $4,000,000dailycollections

×1.5daysspeedup=$6,000,000additionalcollections

$2,000,000dailydisbursements

×.5daysslowdown=$1,000,000delayeddisbursements

$7,000,000freed-upfunds

b.

c. No.Theannualinco