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Shella's Sociefy Clothing Manufacturer has collection centres around the country to speed up cash collections. The company aiso makes its disbursements from remote disbursement centres,
Shella's Sociefy Clothing Manufacturer has collection centres around the country to speed up cash collections. The company aiso makes its disbursements from remote disbursement centres, so cheques written by Shefla's take longer to clear the bank. Collection time has been reduced by three days and a half days and disbursement time has been increased by one and a half days because of these policies. Excess funds are being invested in short-term instruments ylelding 4 percent per annum. a. If the firm has $4.40 million per day in collections and $370 milion per day in disbursements, how many dollars has the cash management system freed up? (Enter the onswer in dollars not in millions.) Freed-up funds b. How much can Shella's earn per year on short-term investments made possible by the freed-up cash? (Enter the onswer in dollars not in millions.) Interest on freed-up cosh
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