MMF holds $300,000 in US Treasury bills earning 2% annually for an equipment purchase in three months.

Some of those funds may be needed earlier for emergencies. The available three-month commercial paper

offers 4% but cannot be converted to cash before its maturity in three months.

A money market mutual fund offers 3% and the ability to redeem to get cash the next business day, similar to the liquidity when selling US Treasury bills. Which policy

best fits MMF’s priorities for these short-term investments?

MMF offers members credit terms that give the members the ability to pay for their membership up to 30 days after signing up. Its accounts receivable balances include $200,000 in membership fees that are 0–30 days old, $30,000 that are 31–60 days old, and

$20,000 that are 61–90 days old. Which balances should MMF include when

identifying overdue receivables?

MMF speeds up collections from its customers on its accounts receivable balances while paying

suppliers within the agreed terms. What is the expected benefit?

Which measure most directly tracks the level of receivables that ultimately are never

collected?

MMF has sold out of its

most popular protein bars, while less popular bars in inventory will expire

next week. Members are asking for the sold-out bars, and management wants to

avoid both lost sales and unsellable products. Which action best improves future

inventory decisions?

MMF’s target is to keep overdue receivables at or below 10% of total

receivables. Its current aging schedule shows that 20% are overdue, including

corporate invoices that are more than 60 days old. Which action most directly

addresses this situation?

The goal of current asset management is to hold the optimal amount of each current asset that best supports the ability to create the most long-term value for the company.

MMF's decision to offer credit to certain customers should account for:

If MMF's average collection period increases, this could be because MMF gave credit to customers with lower credit scores.

MMF offers customers a discount for paying within 10 days

instead of 30 days. Which credit policy variable is MMF changing?