Management of cash balance Personal finance Problem Alexis Morris, an assistant manager at a local department store, get paid every 2 weeks by direct deposit into her checking account. This account pays no Interest and has no minimum balance requirement. Her monthly income is $4,000. Alexis has a larger cash balance of around $1.200, and whenever it exceeds that amount she transfers the excess into her savings account, which currently pays 21% annual interest Her current savings balance is $15,300, and Alexis estimates she transfers about $50 per month from her checking account into her savings account. Alexis doesn't waste any ime in paying her bills, and her monthly bil average about 51.630. Her monthly cash outlay for food, gas, and other sundry items totals about $860. Reviewing her payment habits indicates that on average she pays her bills 12 days early a s time, most marketable securities are yielding about 460% anual interest Show how Alexis can better manage her cash balance a. What can Nais do regarding the handing of her current balances? b. What do you suggest that she do with her monthly surpluses? c. What do you suggest Nons do about the manner in which she pays her bils? d. Can Alexis grow her investment income by better managing her cash balances? a. What can Alexis de regarding the handing of her current balances? (Select the best answer below) O A Aleks should transfer her current savings account balances into the liquid marketable security OB. Alexis should look for a checking account that pays at least 21%. OC. Alexis should lower her "targer cash balance to around 5882. O D. Alexis should increase her target cash balance lo around $1.638 b. What do you suggest that she do with her monthly surpluses? (Select the best answer below) O A Alexis should transfer monthly the $60 from her checking account to the liquid marketable security OB. Alexis should transfer monthly the $850 from her checking account to her savings account OC. Alexis should transfer monthly the $860 from her checking account to the liquid marketable security. U C Alexis should transfer monthly the $860 from her checking account to the liquid marketable security OD. Alexis should transfer monthly the $50 from her checking account to her savings account. c. What do you suggest Alexis do about the manner in which she pays her bills? (Select the best answer below.) O A Alexis should pay her bills late every other month to increase her cash flow OB. Alexis should try to spend less for food, gas, and other sundry items O C Alexis should slow down payments of her bis until they are due OD. Alexis should keep paying her bills as in the past d. Can Alexis grow her investment income by better managing her cash balances? (Select from the drop-down menu.) Alexis' annual earnings grow by following the above recommendations Click to select your answer Management of cash balance Personal finance Problem Alexis Morris, an assistant manager at a local department store, get paid every 2 weeks by direct deposit into her checking account. This account pays no Interest and has no minimum balance requirement. Her monthly income is $4,000. Alexis has a larger cash balance of around $1.200, and whenever it exceeds that amount she transfers the excess into her savings account, which currently pays 21% annual interest Her current savings balance is $15,300, and Alexis estimates she transfers about $50 per month from her checking account into her savings account. Alexis doesn't waste any ime in paying her bills, and her monthly bil average about 51.630. Her monthly cash outlay for food, gas, and other sundry items totals about $860. Reviewing her payment habits indicates that on average she pays her bills 12 days early a s time, most marketable securities are yielding about 460% anual interest Show how Alexis can better manage her cash balance a. What can Nais do regarding the handing of her current balances? b. What do you suggest that she do with her monthly surpluses? c. What do you suggest Nons do about the manner in which she pays her bils? d. Can Alexis grow her investment income by better managing her cash balances? a. What can Alexis de regarding the handing of her current balances? (Select the best answer below) O A Aleks should transfer her current savings account balances into the liquid marketable security OB. Alexis should look for a checking account that pays at least 21%. OC. Alexis should lower her "targer cash balance to around 5882. O D. Alexis should increase her target cash balance lo around $1.638 b. What do you suggest that she do with her monthly surpluses? (Select the best answer below) O A Alexis should transfer monthly the $60 from her checking account to the liquid marketable security OB. Alexis should transfer monthly the $850 from her checking account to her savings account OC. Alexis should transfer monthly the $860 from her checking account to the liquid marketable security. U C Alexis should transfer monthly the $860 from her checking account to the liquid marketable security OD. Alexis should transfer monthly the $50 from her checking account to her savings account. c. What do you suggest Alexis do about the manner in which she pays her bills? (Select the best answer below.) O A Alexis should pay her bills late every other month to increase her cash flow OB. Alexis should try to spend less for food, gas, and other sundry items O C Alexis should slow down payments of her bis until they are due OD. Alexis should keep paying her bills as in the past d. Can Alexis grow her investment income by better managing her cash balances? (Select from the drop-down menu.) Alexis' annual earnings grow by following the above recommendations Click to select your
