QUESTION 6 On 25 January Coot Company has $250 000 deposited with a local bank. On 27 January the company writes and mails cheques of $20 000 and $60 000 to suppliers. At the end of the month Coots financial manager deposits a $45 000 cheque received from a customer in the morning mail and picks up the end-of-month account summary from the bank. The manager notes that only the $20 000 payment of the 27 January has been cleared by the bank. What are the companys cash account ledger balance and the payment float? what is the company's net float? QUESTION 7 Gadgets Pty Ltd uses 1 000 bearings per week. The cost to place and receive an order is $100 Carrying costs are 40 cents per bearing per annum a) Determine the economic order quantity b) If the vendor now offers gadgets a quantity discount of l cent per bearing if it buys in order sizes of 10 000 bearings, should Gad gets avail itself of this discount? QUESTION 8 The daily net cash flows of Flush Ltd vary randomly, with a mean of $o and a standard deviation of $16 000. The company can earn an average of 10% on short-term investments, whilst its marginal yield from long-term investments is 14%. The bank charges the company overdraft interest at the rate of 10. 5% plus a 0.5% overdraft service fee, but makes no charge for the unused portion of its overdraft limit. The fixed cost per transaction for short-term investment or disinvestment has been estimated at $10. For transferring money in and out of long-term investments the cost is about $250. The company uses the Miller-Orr model fo controlling its bank balance What is the return point for Flush Ltd's bank balance and the upper and lower limits? Assume 365 days per yearAugust 2003 QUESTION 6 On 25 January Coot Company has $250 000 deposited with a local bank. On 27 January the company writes and mails cheques of $20 000 and $60 000 to suppliers. At the end of the month Coot’s financial manager deposits a $45 000 cheque received from a customer in the morning mail and picks up the end-of-month account summary from the bank. The manager notes that only the $20 000 payment of the 27 January has been cleared by the bank. What are the company’s cash account ledger balance and the payment float? What is the company’s net float? QUESTION 7 Gadgets Pty Ltd uses 1 000 bearings per week. The cost to place and receive an order is $100. Carrying costs are 40 cents per bearing per annum. a) Determine the economic order quantity. b) If the vendor now offers gadgets a quantity discount of 1 cent per bearing if it buys in order sizes of 10 000 bearings, should Gadgets avail itself of this discount? QUESTION 8 The daily net cash flows of Flush Ltd vary randomly, with a mean of $0 and a standard deviation of $16 000. The company can earn an average of 10% on short-term investments, whilst its marginal yield from long-term investments is 14%. The bank charges the company overdraft interest at the rate of 10.5% plus a 0.5% overdraft service fee, but makes no charge for the unused portion of its overdraft limit. The fixed cost per transaction for short-term investment or disinvestment has been estimated at $10. For transferring money in and out of long-term investments the cost is about $250. The company uses the Miller-Orr model for controlling its bank balance. What is the return point for Flush Ltd's bank balance and the upper and lower limits? Assume 365 days per year