Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 02, 2024

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Master The Art Of Real Estate Investment

Authors: Rylanx H. Oconnor

1st Edition

979-8868087974

More Books

Students also viewed these Finance questions

Question

★★★★★

a. Calculate the field current required to achieve operation at 15.2 N m torque and 1800 r/min. Calculate the corresponding PWM duty cycle D. b. Calculate the field current required to achieve...

Answered: 1 week ago

Question

★★★★★

The following balances were taken from the books of Parnevik ASA on December 31, 2022. Assume the total effective tax rate on all items is 34%. Instructions Prepare an income statement; 100,000...

Answered: 1 week ago

Question

★★★★★

1.1. Explain the link between a countrys growth rate, its investment spending as a percent of GDP, and its domestic savings.

Answered: 1 week ago

Question

★★★★★

The so-called local carrier is also almost unique to the motor-carrier industry. Why?

Answered: 1 week ago

Question

★★★★★

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....

Answered: 1 week ago

Question

★★★★★

The chronological age of a property is 45 years. The appraiser renders an opinion of the structure's effecti age of 20 years and remaining economic life of 80 years. What is the percentage of accrued...

Answered: 1 week ago

Question

★★★★★

Need help with these graphs. Question 1 D S P Q Graphing On notebook paper, please graph the following scenarios for each market and provide an answer key. Market Event a. Steak Increase consumer's...

Answered: 1 week ago

Question

★★★★★

Jarvis runs a restaurant and knows that customers post pictures and messages about the restaurant on a regular basis. What can Jarvis do to help ensure a more positive post, even if a customer has a...

Answered: 1 week ago

Question

★★★★★

When an 8-bit or 16-bit data is loaded from the data memory into a 32-bit register, whether sign extension or zero extension is performed depends on the data's sign. LDRSB (load register with signed...

Answered: 1 week ago

Question

★★★★★

In the following exercises, use one of the comparison tests. Show and explain your work. (a) Calculate the limit limx01cosxx2 and use it to find out whether n=1[1cos(1n)] converges or diverges

Answered: 1 week ago

Question

★★★★★

The following are partial balance sheets for the Bank of Canada and the 14 LVTS Participants: 14 LVTS Participants / Primary BANK OF CANADA Dealers Consolidated Assets(SBS): Liabilities (SBS):...

Answered: 1 week ago

Previous Question Next Question