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:

Modified Leaf

A leaf that has altered its shape, structure, or function from the typical form to serve specific roles, such as protection, reproduction, or storage.

Bud Scales

Protective structures that cover the developing bud of a plant, helping to shield it from environmental damage and desiccation.

Guttation

The exudation of small droplets of water from the pores of plants, typically occurring at the leaf margins or tips.

Modified Leaf

A leaf of a plant that has altered form or function from the standard flat, photosynthetic structure, often serving roles in reproduction, protection, or storage.