A company has contracted with their bank to do a collection float study of their current collections process and tried to decide if to use lockbox service provided by the bank. The company has on average sale 80 million per month. Assume 30 days per month. For an average month, the bank has determined that the company has three basic batches of collections with associated collection float as listed below: Batch Avg Collections Days of Float
#1 (Local) $ 25,000,000 2
#2 (Regional) $ 15,000,000 4
#3 (Distant) $ 40,000,000 6
The annual volume of checks is 12,000. The company's cost of capital is 7%. If the checks are processed internally, the processing fee would be $0.25 per item. If changing to a lockbox would have no effect on the local collection, but would reduce the regional float by 1 day and the distant float by 2 days. But the lockbox costs $10,000 per year and $0.5 per item processing fee. What is the net profit using lockbox service?
a) $3,153,667
b) $11,666,667
c) $221,667
d) $208,667

Wallace company provides the following data for next year: month budgeted sales january $120,000 february 108,000 march 140,000 april 147,000 the gross profit rate is 35% of sales. inventory at the end of december is $29,600 and target ending inventory levels are 10% of next month's sales, stated at cost. what is the amount of purchases budgeted for january?

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)

Differentiate between the trait, behavioral, and results-based performance appraisal systems, providing an example where each would be most applicable.