1- Roze Corporation is investigating a lockbox system to reduce its collection time. It has determined that on average, there are 405 payments with an average value of $1,200 each. If a lockbox system is implemented, the lockbox fee per transaction will be $0.65. If the collection time can be reduced by 4 days, and the daily interest on money market securities is.03%, then determine the net cash flow per day from adopting the system.

Multiple Choice

• $359.95
• $289.95
• $319.95
• $339.95
• $269.95

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2- One of the primary products your firm offers sells for $24.99 a unit. The variable cost per unit is $14.42 and the carrying cost per unit is $.74. You sell 7,320 of these units each year. The fixed cost to order this item is $50. What is the economic order quantity?

Multiple Choice

• 1,111 units
• 1,013 units
• 982 units
• 995 units
• 1,069 units

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• How many days are in the operating cycle?

  Multiple Choice

• 135 days
• 125 days
• 127 days
• 118 days
• 123 days
• 
  

  • 	Beginning	Ending
    Inventory	$27,000	$28,000
    Accounts Receivable	21,000	22,000
    Accounts Payable	10,000	14,000

    Credit Sales = $175,000
    COGS = $125,000

Answer rating: 100% (QA)

Solution 1 To find the net cash flow per day from adopting the lockbox system we need to calculate the current collection time and the new collection ... View the full answer