Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Each business day, on average, a company writes checks totaling $13,300 to pay its suppliers. The usual clearing time for the checks is four days.

image text in transcribed
image text in transcribed
Each business day, on average, a company writes checks totaling $13,300 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 $24,300. 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.) Disbursement float Collection float Nettloat erence 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.) Disbursement float Collection float Net lloat

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

Financial Liberalization And The Asian Crisis

Authors: H. Chang, G. Palma, D. Whittaker

1st Edition

0333921585, 978-0333921586

More Books

Students also viewed these Finance questions