14:14 0.10KB/s4G4GO VPN 4GI 62%INDIVIDUAL activity fo...capital managementNAME:SECTION:BAUMOL CASH MANAGEMENT MODELABC Company uses the BAUMOL CASH MANAGEMENT MODEL to determine its optical cashbalance.For the coming year, the expected cash disbursements total P432,000. The interest rate on marketablesecurities is 55 per annum. The fixed cost of selling marketable securities is P8 per transaction.Compute for:1. optimal cash balance2. average cash balanceEOQ MODELThe following information are available for XYZ Corporation's Material E.Annual usage= 12,600 unitsWorking days per year 360daysNormal lead time= 20daysThe units of Material E are required evenly throughout the year.What is the reorder point?Assuming that occasionally, the company experiences delay in the delivery of Material X, suchthat the lead time reaches a maximum of 30days, how many units of safety stock should the companymaintain and what is the reorder point?

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BAUMOL CASH MANAGEMENT MODEL ABC Company uses the BAUMOL CASH MANAGEMENT MODEL to determine its optical cash balance. For the coming year, the expected cash disbursements total P432,000. The interest rate on marketable securities is 55 per annum. The fixed cost of selling marketable securities is P8 per transaction. Compute for: 1. optimal cash balance 2. average cash balance

BAUMOL CASH MANAGEMENT MODEL ABC Company uses the BAUMOL CASH MANAGEMENT MODEL to determine its optical cash balance. For the coming year, the expected cash disbursements total P432,000. The interest rate on marketable securities is 55 per annum. The fixed cost of selling marketable securities is P8 per transaction. Compute for: 1. optimal cash balance 2. average cash balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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