Sol Manoloto Company has a sales of P110 million a year. If Sol Manoloto Company reduces its processing float by 3 days , what is the increase in the firm’s average cash balance? Assume 360 days per year.
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1. Sol Manoloto Company has a sales of P110 million a year. If Sol Manoloto Company reduces its processing float by 3 days , what is the increase in the firm’s average cash balance? Assume 360 days per year.
2. Xader Manalastas predicts a cash requirement of P25,000 over a 1-month period in which cash is expected to be paid constantly. The opportunity interest rate is 12% per annum. The transaction cost associated with each borrowing or withdrawal is P10.
a. What is the optimal transaction size?
b. Since it is known how much is usually available to meet operating needs, What is the average cash balance?
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- Xader Manalastas predicts a cash requirement of P25,000 over a 1-month period in which cash is expected to be paid constantly. The opportunity interest rate is 12% per annum. The transaction cost associated with each borrowing or withdrawal is P10.a. What is the optimal transaction size? b. Since it is known how much is usually available to meet operating needs, What is the average cash balance?4. Sovereign-Tea Company projected to make even monthly cash payments of P150,000 during the year. The average return on money market placements is eight percent per annum and payment for cash transfer is expected to be P250 per transaction. Determine the total relevant cost using the Baumol Model.The Real Company has cash needs of P5 million per month. If real needs more cash, it can sell marketable securities, incurring a fee of P300 for each transaction. If real leaves its funds in marketable securities, it expects to earn approximately 0.50% per month on their investment. If real gets a cash infusion of P1 million each time it needs cash, what are the total costs per month associated its cash infusions? If real gets a cash infusion of P1 million each time it needs cash, how many transactions would be associated with its cash investment? If real gets a cash infusion of P1 million each time it needs cash, what are the transactions costs per month associated its cash infusions? how much would be the real's minimum total costs associated with cash infusion? If realgets a cash infusion of P1 million each time it needs cash, how much would be the average cash balance associated with its cash investment? If real gets a cash infusion of P1 million each time it needs cash, what are…
- The Sandbox's Company has cash needs of P5 million per month. If Sandbox needs more cash, it can sell marketable securities, incurring a fee of P300 for each transaction. If Sandbox leaves its funds in marketable securities, it expects to earn approximately 0.50% per month on their investment. If Sandbox gets a cash infusion of P1 million each time it needs cash, what are the transactions costs per month associated its cash infusions?The Sandbox's Company has cash needs of P5 million per month. If Sandbox needs more cash, it can sell marketable securities, incurring a fee of P300 for each transaction. If Sandbox leaves its funds in marketable securities, it expects to earn approximately 0.50% per month on their investment. 1. If Sandbox gets a cash infusion of P1 million each time it needs cash, what are the transactions costs per month associated its cash infusions? 2. If Sandbox gets a cash infusion of P1 million each time it needs cash, how many transactions would be associated with its cash investment?Buccaneer, Inc., has determined that it needs $10 million in cash per week. If Buccaneer needs additional cash, it can sell marketable securities, incurring a fee of $100 for each transaction. If Buccaneer leaves funds in its marketable securities, it expects to earn approximately 0.2% per week on their investment. 1. How much is the weekly opportunity cost of cash? (Use a number, must be in decimal form. eg. 6.3%/100, encode 0.063 , no commas, no currency, no space) * 2. How much is the total demand for cash per week? (Use a number, no decimal value, no commas, no currency, no space) *
- Green Corporation anticipates a cash requirement of P1,000 over a 1- month period. It is expected that cash will be paid uniformly. The annual interest rate is 24 percent. The transaction cost of each borrowing or withdrawal is P30. Requirement: (a) What is the optimal cash balance? (b) What is the average cash balance?PROBLEM Buccaneer, Inc., has determined that it needs $10 million in cash per week. If Buccaneer needs additional cash, it can sell marketable securities, incurring a fee of $100 for each transaction. If Buccaneer leaves funds in its marketable securities, it expects to earn approximately 0.2% per week on their investment. 1. How much is the weekly opportunity cost of cash? (Use a number, must be in decimal form. eg. 6.3%/100, encode 0.063 , no commas, no currency, no space) * 2. How much is the total demand for cash per week? (Use a number, no decimal value, no commas, no currency, no space) * 3. How much is the cost per transaction? (Use a number, no decimal value, no commas, no currency, no space) * 4. Using the Baumol Model, how much cash should Buccaneer raise from selling securities each week to minimize its costs of cash? (Use a number, no decimal value, no commas, no currency, no space) * PLEASE ANSWER ALL QUESTIONS. THANK YOUThe Sandbox's Company has cash needs of P5 million per month. If Sandbox needs more cash, it can sell marketable securities, incurring a fee of P300 for each transaction. If Sandbox leaves its funds in marketable securities, it expects to earn approximately 0.50% per month on their investment. 1. If Sandbox gets a cash infusion of P1 million each time it needs cash, how much would be the average cash balance associated with its cash investment? 2. If Sandbox gets a cash infusion of P1 million each time it needs cash, what are the total costs per month associated its cash infusions?
- C. Exodus Corp. is analyzing the performance of its cash management. On the average, the firm holds inventory 65 days, pays its suppliers in 35 days, and collects its receivables in 15 days. The firm has a current annual outlay of P1,960,000 on operating cycle investments. Exodus currently pays 10 percent for its negotiated financing. (Assume a 360-day year.) Calculate the following: a. Cash conversion cycle b. Operating cycle. c. Daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days.Leyton Lumber Company has sales of $12 million per year, all oncredit terms calling for payment within 30 days, and its accounts receivable are $1.5 million.What is Leyton’s DSO, what would it be if all customers paid on time, and how much capitalwould be released if Leyton could take action that led to on-time payments?Problem The Sandbox's Company has cash needs of P5 million per month. If Sandbox needs more cash, it can sell marketable securities, incurring a fee of P300 for each transaction. If Sandbox leaves its funds in marketable securities, it expects to earn approximately 0.50% per month on their investment. 1. If Sandbox gets a cash infusion of P1 million each time it needs cash, what are the transactions costs per month associated its cash infusions? Use a number, no decimal value no currency, no space, no commas * PLEASE ANSWER THANKS!
