ABC CorpDisburses $4 Million Annually and Keeps Idle Funds in Treasury

question 21

Multiple Choice

ABC Corp.disburses $4 million annually and keeps idle funds in Treasury bills which earn an average of 5 percent and incur a fixed cost of $35 each time a cash conversion is made.What is the average amount of cash that ABC Corp.should have on hand?

• A)$16,733
• B)$33,466
• C)$37,417
• D)$74,833

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Definitions:

Maladaptive

Refers to behaviors or thoughts that inhibit a person's ability to adjust to particular situations.

Dysfunctional

Not operating normally or effectively.

Daily Functioning

Refers to the routine activities and behaviors performed by an individual on a day-to-day basis.

Immoral

Actions or behaviors that go against accepted moral principles or standards of conduct.