How can cash discounts improve cash collections? What are the ramifications if a firm has too much cash on hand? How can the use of marketable securities be appropriate investments in the management of cash?

How can cash discounts improve cash collections? What are the ramifications if a firm has too much cash on hand? How can the use of marketable securities be appropriate investments in the management of cash?

A business has a bank balance at the start of the month of £2,500. It then paid for materials invoiced at £1000 less trade discount of 20% and cash discount of 10%. A cheque was received froma debtor for £200 subject to cash discount of 5% The bank balance at the end of the month is: A£1970...