Problem 19.02 – Sources and Uses of Cash
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Calculate a statement of cash flow from the table provided.
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Calculate a statement of cash flow from the table provided.
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Given average checks per day, clearing time, and the interest rate… figure out the company’s float, the most the company should pay to eliminate float, and the highest daily fee to eliminate its float.
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Given both check amounts and both clearing times… find out the total float, average daily float, average daily receipts, and weighted average delay.
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Given the average receipt size, decreased collection time, checks received, interest rate, bank fee… figure out the NPV and annual net savings.
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Given the information on the mail-order firm… figure out the average daily float, weighted average delay, maximum pay, the daily cost of float, and price to reduce float.
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Given the average number of payments, the value of payment, variable lockbox fee, and daily interest rate… figure out the PV, NPV, net cash flow per day, and net cash flow per check.
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Given days to receive and deposit checks, reduced deposit time, average daily collections, and required return… figure out the outstanding cash balance reduction, daily dollar return, and the maximum monthly charges.
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Given the average disbursed check amount, days to clear the check, and interest-bearing account… figure out the annual interest earned.
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Given the information on the lockbox system… figure out the NPV of the new system and the NPV with the annual fixed charge.
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Given the annual fee, reduction in collection and processing time, treasury bills, and the average customer payment… figure out the number of customers.
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