If the ledger balance is $750,000 and the collected balance is $550,000, then deposit float is equal to _____.

	a.	$750,000
	b.	$550,000
	c.	$200,000
	d.	-$550,000

3 points

QUESTION 2

The XYZ Company has annual COGS of $300,000 and an ending accounts payable balance of $46,000. How long, on average, does XYZ take to pay for its purchases?

	a.	55.97 days
	b.	59.52 days
	c.	52.15 days
	d.	48.78 days

3 points

QUESTION 3

A treasury manager needs to move $200,000 from one corporate account to the firm's primary account. Moving the funds by wire will cost $15 while moving the funds by ACH will cost $0.50. The ACH takes 1 day longer to clear. The firm's account earns an earnings credit rate of 0.75%, and the required reserve ratio is 10%. If the firm's opportunity cost of funds is 4%, what is the minimum transfer balance that justifies a wire transfer?

	a.	$88,685.95
	b.	$86,546.15
	c.	$149,084.51
	d.	$159.172.93

3 points

QUESTION 4

Following Question 3, what is the maximum opportunity cost that makes the treasury manager indifferent between the transfer methods?

	a.	2.94%
	b.	4.57%
	c.	3.68%
	d.	3.32%

3 points

QUESTION 5

If the annualized effective cost of missing the trade credit discount is 8.19% and the length of the discount period is 15 days and the discount percentage is 1%, then what is the length of the net trade credit period?

	a.	40 days
	b.	50 days
	c.	70 days
	d.	60 days