Hollywood Shoes would like to maintain their cash account at a minimum level of $66,000, but expect the standard deviation in net daily cash flows to be $5,600; the effective annual rate on marketable securities to be 6.25 percent per year; and the trading cost per sale or purchase of marketable securities to be $260 per transaction. What will be their optimal cash return point? (Round your answer to 2 decimal places.)
A) $71,600.00
B) $99,266.40
C) $86,614.44
D) $90,299.40
2. Scribble, Inc. has sales of $88,000 and cost of goods sold of $72,000. The firm had a beginning inventory of $18,000 and an ending inventory of $20,000. What is the length of the days' sales in inventory? (Round your answer to 2 decimal places.)
A) 101.39 days
B) 91.25 days
C) 82.95 days
D) 74.66 days