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Each business day, on average, a company writes checks totaling $ 1 3 , 3 0 0 to pay its suppliers. The usual clearing time
Each business day, on average, a company writes checks totaling $ 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 $ The cash from the payments is available to the firm after two days.
a
Calculate the companys disbursement float, collection float, and net float. A negative answer should be indicated by a minus sign. Do not round intermediate calculations.
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.
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