Each business day, on average, a company writes checks totaling $40,000 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 $51,000. The cash from the payments is available to the firm after two days.Calculate the company's disbursement float, collection float, and net float.Calculate the company's disbursement float,collection float, and net float, if the collected funds were available in one day instead of two.

Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/30, net 40. Based on experience, 65 percent of all customers will take the discount.What is the average collection period? If the company sells 1,350 forecasts every month at a price of $2,450 each, what is its average daily balance sheet amount in accounts receivable?

A firm offers terms of 2/15, net 45.What effective annual interest rate does the firm earn when a customer does not take the discount?What effective annual interest rate does the firm earn if the discount is changed to 3 percent?What effective annual interest rate does the firm earn if the credit period is increased to 65 days?What effective annual interest rate does the firm earn if the discount period is increased to 20 days?

Clap Off Manufacturing uses 1,500 switch assemblies per week and then reorders another 1,500. Assume the relevant carrying cost per switch assembly is $5.20 and the fixed order cost is $585.Calculate the carrying costs. Calculate the restocking costs.Calculate the economic order quantity.Calculate the EOQ number of orders per year.