# Finance Four Questions

Problem 1The Trektronics store begins each week with 460 phasers in stock. This stock is depleted each week andreordered. The carrying cost per phaser is \$41 per year and the fixed order cost is \$84.What is the current total carrying cost? (Do not round intermediate calculations.)Carrying costs\$What is the current restocking cost? (Do not round intermediate calculations.)Restocking costs\$What is the economic order quantity? (Do not round intermediate calculations and round your finalanswer to 2 decimal places. (e.g., 32.16))EOQ\$How many orders per year will Tektronics place if it orders the economic order quantity? (Do not roundintermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))Orders per year\$Problem 2Your neighbor goes to the post office once a month and picks up two checks, one for \$13,500 and onefor \$4,500. The larger check takes four days to clear after it is deposited; the smaller one takes threedays. Assume 30 days in a month.a. What is the total float for the month? (Do not round intermediate calculations.)Total float\$b. What is the average daily float? (Do not round intermediate calculations and round your finalanswer to 2 decimal places. (e.g., 32.16))Average daily float\$c-1. What are the average daily receipts? (Do not round intermediate calculations and round yourfinal answer to 2 decimal places. (e.g., 32.16))Average daily receipts\$c-2. What is the weighted average delay? (Do not round intermediate calculations and round yourfinal answer to 2 decimal places. (e.g., 32.16))Weighted average delaydaysProblem 3The Arizona Bay Corporation sells on credit terms of net 30. Its accounts are, on average, 4 days pastdue. Annual credit sales are \$5.8 million.What is the companyâs balance sheet amount in accounts receivable? (Use 365 days a year. Enter youranswer in dollars, not millions of dollars, i.e. 1,234,567. Do not round intermediate calculationsand round your final answer to 2 decimal places. (e.g., 32.16))Accounts receivable\$Problem 4It takes Cookie Cutter Modular Homes, Inc., about six days to receive and deposit checks fromcustomers. Cookie Cutterâs management is considering a lockbox system to reduce the firmâs collectiontimes. It is expected that the lockbox system will reduce receipt and deposit times to four days total.Average daily collections are \$131,000, and the required rate of return is 6 percent per year. Assume 365days per year.a. What is the reduction in outstanding cash balances as a result of implementing the lockbox system?(Do not round intermediate calculations.)Cash balance reduction\$b. What is the daily dollar return that could be earned on these savings? (Do not round intermediatecalculations and round your final answer to 2 decimal places. (e.g., 32.16))Dollar return\$c-1. What is the maximum monthly charge Cookie Cutter should pay for this lockbox system if thepayment is due at the end of the month? (Do not round intermediate calculations and roundyour final answer to 2 decimal places. (e.g., 32.16))Maximum monthly charge\$c-2. What is the maximum monthly charge Cookie Cutter should pay for this lockbox system if thepayment is due at the beginning of the month? (Do not round intermediate calculations andround your final answer to 2 decimal places. (e.g., 32.16))Maximum monthly charge