1. Explain how a lockbox functions. Discuss how it is used by a business, the customers of the business and the bank that is used by the business.

2. What is float? with respect to payments and receipts of cash. How does it occur?

3. What changes have taken place as a result of the Check 21 Act?

4. Explain the difference between an ACH transaction and a wire transfer.

5. What are the factors to consider when comparing one investment to another? How can we compare the investment in accounts receivable to an investment in money market funds?

6. Suppose that Sales = 5000 units per year, the ordering cost is $15 per order and the carrying cost per unit is $0.25. Compute the Economic Order quantity.