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A company has the following cash balances: Companys ledger balance = $600,000 Banks ledger balance = $625,000 Available balance = $550,000 a. Calculate the payment
A company has the following cash balances: Companys ledger balance = $600,000 Banks ledger balance = $625,000 Available balance = $550,000
a. Calculate the payment float and availability float.
b. Why does the company gain from the payment float?
c. Suppose the company adopts a policy of writing cheques on a remote bank. How is this likely to affect the three measures of cash balance?
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