7.2. Price Corporation is considering selling to a group of new customers and creating new annual sales of $210,000. 2% will be uncollectible. The collection cost on all accounts is 5% of new sales, the cost of producing and selling is 83% of sales, and the firm is in the 21% tax bracket. What is the profit on new sales?

A. $16,590 B. $17,718 C. $18,768 D. $22,890

Answer D

7.3. Modos Company has deposited $4,140 in checks received from customers. It has written $1,540 in checks to its suppliers. The initial bank and book balance was $430. If $3,570 of its customers' checks have cleared, but only $490 of its own, calculate its float.

A. $580 B. $480 C. $1,060 D. $630

Answer B

7.7________ is the fastest growing type of electronic funds transfer and is represented by 7.5% of transactions as governmental and 92.5% as commercial.

International electronic funds transfer

Automated clearing houses (ACHs)

Person-to-person transfers (P2P)

None of the options are correct.

Answer C

8.1 Holland Construction Company has an outstanding 180-day bank loan of $402,000 at an annual interest rate of 9.9%. The company is required to maintain a 17% compensating balance in its checking account. What is the effective interest rate on the loan? Assume the company would not normally maintain this average amount.

Note: Use 360 days in a year. Round your answer to 2 decimal places.

14.93%

10.93%

13.93%

D. 11.93%