1. A lockbox arrangement is:
a. a method for the safe-keeping of marketable securities.
b. a system for slowing down cash disbursements.
c. a system for speeding up a firm's collections of checks received.
d. a system for speeding up a firm's disbursement of checks to the customers.
e. used to identify inventory safety stocks.
2. Jumpdisk Company writes checks averaging $15,000 a day, and it takes 5 days for these checks to clear. The firm also receives checks in the amount of $17,000 per day, but the firm loses three days while its receipts are being deposited and cleared. The firm's net float in dollars is:
a. $16,000.
b. $32,000.
c. $126,000.
d. $75,000.
e. $24,000.