One of the companies adopts a central system for the payment of payment bills through the general administration, and this requires an average of 4 days for the checks to reach the customers as well as 1,5 The day of registration of checks before they are deposited in the bank, and the average company receipts are 500 thousand dinars per day. The company is studying the possibility of using mailboxes through renting, and this will reduce the time for mailing checks by an amount 2,5 day, and the time required to prepare checks for deposit is reduced by one day. Required: 1. What is the amount of cash that can be released in this process?

One of the companies adopts a central system for the payment of payment bills through the general administration, and this requires an average of 4 days for the checks to reach the customers as well as 1,5 The day of registration of checks before they are deposited in the bank, and the average company receipts are 500 thousand dinars per day. The company is studying the possibility of using mailboxes through renting, and this will reduce the time for mailing checks by an amount 2,5 day, and the time required to prepare checks for deposit is reduced by one day. Required: 1. What is the amount of cash that can be released in this process?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 2P

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