Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Each business day, on average, a company writes checks totaling $ 1 3 , 2 0 0 to pay its suppliers. The usual clearing time

Each business day, on average, a company writes checks totaling $13,200 to pay its suppliers. The usual clearing time for the checks is four days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $24,200. The cash from the payments is available to the firm after two days.
a. Calculate the company's disbursement float, collection float, and net float. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g.,32.)
b. If the collected funds were available in one day instead of two, what would be the company's disbursement float, collection float, and net float? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g.,32.)
Answer is not complete.
\table[[a. Disbursement float,$,52,800],[a. Collection float],[a. Net float],[b. Disbursement float,$,52,800],[b. Collection float],[b. Net float,,]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_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

Salomon Smith Barney Guide To Mortgage Backed And Asset Backed Securities

Authors: Lakhbir Hayre

1st Edition

0471385875, 978-0471385875

More Books

Students also viewed these Finance questions

Question

I am paid fairly for the work I do.

Answered: 1 week ago

Question

I receive the training I need to do my job well.

Answered: 1 week ago