The owner has come up with a couple of new questions for you. Specifically, he wants to know: 1. Collection Float: Interest rates have been so low for so long that no one thought much about the opportunity cost of all those payments that arrive by mail. Now that rates are higher, maybe we should at least figure out what it is costing us. 2. ACH/Wire Transfer: Every week, money is transferred from the main account at Wells Faro to or from a brokerage account at TD Ameritrade/Charles Schwab. (The brokerage account was with TD Ameritrade. In 2023, Charles Schwab acquired and merged with TD Ameritrade.) You have always used ACH for that transfer, but David has asked if you would ever use a wire transfer to speed up the transfer. Would it be worth it? 3. ACH Discount: Our largest vendor has asked us to switch from paying them by check to paying by ACH. If we do that, we lose the disbursement float. We should get something in exchange for that. How much of a discount should we ask for? Or beter stated, what is the minimum discount we should accept to make this change? A perpetual discount actually sounds like a pain for us and for them to keep up with. What if we just asked for a one-time credit to make the transition. How much should that be? 4. Account Balance Management: One of your responsibilities is to ensure the balance in the Wells Fargo account is always sufficient to meet the financial obligations of the business- i.e. make sure our checks don't bounce. David instructed you to not keep more than about $2,000 as a cushion in the account. Now he wants to know how much we would need to keep in the account such that we do not run short more than once each year./n5. Cashflow Forecast: Lastly, he would like to have a forecast of future cashflows, which could also help answer the question about managing the cash split between the two accounts. Also, Use 5.25% as the cost of capital/hurdle rate. For the thumb rule on wire transfers, I understand that it will depend on the day of the week. I think we just need a table or range of solutions. For collection float, we have not been recording the postmark dates, so just make a reasonable assumption Checks are sent by bill pay, so it actually costs us nothing beyond our bookkeeper's time to initiate the payment. Note that the bookkeeper's time will be the same for bill pay or ACH-so I think that is a wash, unless I'm missing something. 2. Nothing ($0) 3. Use 30 days. All our invoices require payment between "upon receipt" and 30 days. We treat all bills as if they were 30 days. So far, we have not been penalized for that.

Fig: 1

Fig: 2