Famous Wine Corp. receives an average of $75,000 in checks per day. The delay in clearing is typically 2.5 days. The current interest rate is .02 percent per day. Assume each month has 30 days. What is the highest daily fee the company should be willing to pay to eliminate its float entirely? $39.00$32.25$37.50$30.15 Sunny Bay Corp. generally receives three checks per month. A check for $12,500 clears in 3 days, a check for $6,000 clears in 3 days, and a check for $7,700 clears in 2 days. Assuming 30 days in each month, what is the average daily float? $8900.00$3543.33$2363.33$2812.33 Your company needs to borrow $10 million for inventory with the line of credit. The quoted interest rate is 1.5 percent per quarter on any funds borrowed and the bank requires to maintain a 5 percent compensating balance on any funds borrowed at zero percent interest. What is the effective annual interest rate on your borrowing? 6.47% 7.42% 5.83% 6.14\% Midwest Products has projected the following quarterly sales: Q1: $2,500;Q2:$3,500;Q3:$3,000;Q4:$4,500 The accounts receivable at the beginning of the year is $1,200 and the average collection period is 30 days. What are cash collections for the second quarter? $2866.67 $2,333.33 $2500.00 $3166.67 Happy Day Corp. has an accounts payable period of 29.5 days and an accounts receivable period of 25.3 days. The company turns over its inventory 10.31 times per year. Assume 365 days per year. What is the company's cash cycle? 19.4 days 35.4 days 60.7 days 31.2 days Page 12 of 20