Lock Boxes. Sherman’s Sherbet currently takes about 6 days to collect and deposit checks from customers. A lock-box system could reduce this time to 4 days. Collections average $10,000 daily. The...

Lock Boxes. Sherman’s Sherbet currently takes about 6 days to collect and deposit checks from customers. A lock-box system could reduce this time to 4 days. Collections average $10,000 daily. The interest rate is .02 percent per day.