Q1:

qua System Inc. expects to have $26,475,000 in credit sales during the coming year. Currently all checks are sent to the home office. A proposed lockbox system can eliminate 2 days of float, releasing funds which, when invested, will earn 7.44 percent per year. What annual savings can Aqua System expect if the system is implemented? Use a 365-day year.

Q2:

Book Depot Inc. sells on terms of 3/10, net 85. What is the implicit cost of trade credit under these terms? Use a 365-day year.

Q3:

Pets Store Inc. sells on terms of 3/10, net 70. What is the effective annual cost of trade credit under these terms? Use a 365-day year.

Q4:

ost Card Depot, an large retailer of post cards, orders 6,183,340 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 9 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.24 per post card per year. The ordering cost is $426 per order.

What is the annual carrying costs of post card inventory

Q5:

Post Card Depot, an large retailer of post cards, orders 9,090,260 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 13 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.08 per post card per year. The ordering cost is $475 per order.

What is the annual ordering cost of the post card inventory?

Q6:

Post Card Depot, an large retailer of post cards, orders 6,456,780 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 15 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.08 per post card per year. The ordering cost is $379 per order.

What is the annual total inventory management costs of post card inventory?

Show your work please