8A1:

Aqua System Inc. expects to have $2,533,284 in credit sales during the coming year. Currently all checks are sent to the home office. A proposed lockbox system can eliminate 5 days of float, releasing funds which, when invested, will earn 14.61 percent per year. What annual savings can Aqua System expect if the system is implemented? Use a 365-day year.

Round the answer to two decimal places

8B1:

Post Card Depot, an large retailer of post cards, orders 6,388,453 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 22 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.12 per post card per year. The ordering cost is $432 per order.

What is the annual carrying costs of post card inventory (round the answer to two decimal places)?

8C1:

Cheeseburger and Taco Company purchases 12,902 boxes of cheese each year. It costs $16 to place and ship each order and $7.62 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

Calculate Economic Order Quantity.

Round the answer to the whole number.

8D1:

American Bacon Inc. financial statements are presented in the table below.

Based on the information in the table, and using a 365-day year, calculate operating cycle.

Round the answers to two decimal places