财务管理基础 第七章 课后题答案 斯坦利.B.布洛克.docVIP

Chapter 7 Problems 1. City Farm Insurance has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement centers. The collection time has been reduced by two days and disbursement time increased by one day because of?these policies. Excess funds are being invested in short-term instruments yielding 12?percent per annum. a. If City Farm has $5 million per day in collections and $3 million per day in disbursements, how many dollars has the cash management system freed up? b. How much can City Farm earn in dollars per year on short-term investments made possible by the freed-up cash? 7-1. Solution: City Farm Insurance a. $5,000,000 daily collections × 2.0 days speed up = $10,000,000 additional collections $3,000,000 daily disbursements × 1.0 days slow down = $ 3,000,000 delayed disbursements $13,000,000 freed-up funds b. 2. Nicholas Birdcage Company of Hollywood ships cages throughout the country. Nicholas has determined that through the establishment of local collection centers around the country, he can speed up the collection of payments by one and one-half days. Furthermore, the cash management department of his bank has indicated to him that he can defer his payments on his accounts by one-half day without affecting suppliers. The bank has a remote disbursement center in Florida. a. If the company has $4 million per day in collections and $2 million per day in disbursements, how many dollars will the cash management system free up? b. If the company can earn 9 percent per annum on freed-up funds, how much will the income be? c. If the annual cost of the new system is $700,000, should it be implemented? 7-2. Solution: Nicholas Birdcage Company of Hollywood a. $4,000,000 daily collections × 1.5 days speed up = $6,000,000 additional collections $2,000,000 daily disbursements × .5 days slow down = $1,000,000 delayed disbursements $7,000,000 freed-up funds b. c. No. The annual inco