Question

A Wholesale lockbox system is: Used for business to business trade Handles a small number of...

A Wholesale lockbox system is:

  1. Used for business to business trade
  2. Handles a small number of large-value payments
  3. Parts “a” and “b”
  4. None of the above  
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: Option C

Wholesale lockbox is used for business to business trade that inclues low volume but high value payments.It is used by banks that helps them to collect funds more easily through reducing processing and other delays enabling employees to process and collect the cheques more fastly of company's customers.

Under this funds deposited by company's customers are routed to a special box,later on bank releases and process payments in the box and transfers them to a comapny's account.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A retail lockbox system handles a large number of checks with a relatively low average dollar...
A retail lockbox system handles a large number of checks with a relatively low average dollar face value. a. True       b. False
Tantom Industries is investigating a lockbox system to reduce its collection time. It has determined the...
Tantom Industries is investigating a lockbox system to reduce its collection time. It has determined the following: Average number of payments per day 435 Average value of payment $920 Variable lockbox fee $0.15 Annual lockbox fee $2000 Daily interest rate 0.068% The total collections time will be reduced by 3 days if the lockbox system is implemented. a. (5 pts) What is the annual benefit of this lockbox system? b. (5 pts) What is the annual cost of this lockbox...
A company is considering implementing a lockbox system. If the system is implemented, the collection time...
A company is considering implementing a lockbox system. If the system is implemented, the collection time will be reduced by 2 days. The average number of payments per day is 885, with an average payment value of $1,103. The lockbox charges a fee per transaction. (That is, the more the number of transactions, the more the total fees.) Assume the company can earn a 2.48% EAR on its cash balances and that there are 365 days in a year. What...
A company is considering implementing a lockbox system. If the system is implemented, the collection time...
A company is considering implementing a lockbox system. If the system is implemented, the collection time will be reduced by 2 days. The average number of payments per day is 953, with an average payment value of $1,019. The lockbox charges a fee per transaction. (That is, the more the number of transactions, the more the total fees.) Assume the company can earn a 3.04% EAR on its cash balances and that there are 365 days in a year. What...
Paper Submarine Manufacturing is investigating a lockbox system to reduce its collection time. It has determined...
Paper Submarine Manufacturing is investigating a lockbox system to reduce its collection time. It has determined the following:         Average number of payments per day 365   Average value of payment $ 955   Variable lockbox fee (per transaction) $ .40   Daily interest rate on money market securities .068 %    The total collection time will be reduced by three days if the lockbox system is adopted.    a. What is the PV of adopting the system? (Do not round intermediate...
Paper Submarine Manufacturing is investigating a lockbox system to reduce its collection time. It has determined...
Paper Submarine Manufacturing is investigating a lockbox system to reduce its collection time. It has determined the following:         Average number of payments per day 425   Average value of payment $ 1,015   Variable lockbox fee (per transaction) $ .40   Daily interest rate on money market securities .068 %    The total collection time will be reduced by three days if the lockbox system is adopted.    a. What is the PV of adopting the system? (Do not round intermediate...
For 2019, Discovery Manufacturing is considering using a lockbox system to speed up collections from its...
For 2019, Discovery Manufacturing is considering using a lockbox system to speed up collections from its customers. They have two proposals to consider: one from BB&T, and one from Bank of America to provide a lockbox service. The basic information about each bank's proposal is presented in the table below. (Similar to Problem 27-11 AND 27-12) DATA INPUTS BB&T Bank Bank of America Rate on money market investments 3.14% 3.14% Average customer payment $2,145 $2,145 Average number of payments per...
The US small business administration (SBA) provides information on the number of small business for each...
The US small business administration (SBA) provides information on the number of small business for each metropolitan area in the US. We know the population distribution is normal with a mean of 12,485 and a standard deviation of 21'937. a) Find the probability that a random city will have more than 17000 business. b) Find the probability that a random sample of size n=36 cities will have a mean number of small businesses greater than 17'000 c) Find the 90...
MACRS with Trade-In: In May 2011, your company traded in a computer and peripheral equipment, used...
MACRS with Trade-In: In May 2011, your company traded in a computer and peripheral equipment, used in its business, that had a BV at that time of $25,000. A new, faster computer system having a fair market value of $300,000 was acquired. Because the vendor accepted the older computer as a trade-in, a deal was agreed to whereby your company would pay $225,000 cash for the new computer system. a. What is the property class life and recovery year for...
When studying the effects of trade restrictions, what is the defining characteristic of a “small nation”...
When studying the effects of trade restrictions, what is the defining characteristic of a “small nation” relative to a “large nation”? A small nation has lower per capita income than a large nation. A small nation has less land mass than a large nation. The trade policies of a small nation cannot influence the world prices of its imports and exports while the trade policies of a large nation can. all of the above When a large nation imposes an...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT