17. Shown below is a forecast of sales for Europe Inc. for the first 4 months of the year (amounts in thousands of pesos).

January February March April

Cash sales P 15 P 24 P 18 P 14

Sales on credit 100 120 90 70

On average, 50% of credit sales are paid for in the month of sale, 30% in the month following the sale, and the remainder

is paid 2 months after the month of sale. Assuming there are no bad debts, what is the expected cash inflow for Europe

in March?

18. Asia Inc. has a pool of cash that it uses to pay bills. When the cash is exhausted, it replenishes its pool by selling T-bills.

The firm disburses P 600,000 in cash every year, and every sale of T-bills costs P 60. The current risk-free rate is 8%.

What is the optimal cash balance for Asia?

19. A firm needs a total of P 30,000,000 in new cash for transaction purposes. The annual interest rate on marketable

securities is 10% and the brokerage fee cost per transaction of selling securities to replenish cash is P 1,000. Which of

the following is closest to the firm's optimal average cash balance?

20. Africa, Inc. has P 2 million invested in T-bills yielding 8% per annum. This investment will satisfy the firm's need for

funds during the coming year. It costs P 50 to sell these bills. If Africa needs P 166,667 a month, how frequently should

the company sell off T-bills?

21. A firm has an average age in inventory of 60 days, an average collection period of 45 days, and an average payment

period of 30 days. What is the number of days in the cash flow cycle?

22. The company's cash flow cycle extends up to 50 days. Receivables age is for 20 days. Average age in inventory is twice

as long as days' receivable. For how long is the company's payable deferral period?