1. Hollywood Shoes would like to maintain their cash account at a minimum level of $55,000, but expect the standard deviation in net daily cash flows to be $4,500; the effective annual rate on marketable securities to be 6.00 percent per year; and the trading cost per sale or purchase of marketable securities to be $150 per transaction. What will be their optimal cash return point? (Round your answer to 2 decimal places.)

$76,695.98

$59,500.00

$79,254.89

$79,382.73

2. Agnes Company reported the following data: Quick assets $55,000 Current assets 150,000 Total liabilities 300,000 Average net receivables 12,600 Beginning inventory 38,000 Long-term liabilities 200,000 Net credit sales 126,000 Cost of goods sold 84,000 Ending inventory 46,000 What was the inventory turnover ratio? 2.2 3.0 1.8 2.0