Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Each business day, on average, a company writes checks totaling $ 3 9 , 0 0 0 to pay its suppliers. The usual clearing time

Each business day, on average, a company writes checks totaling $39,000 to pay its
suppliers. The usual clearing time for the checks is three days. Meanwhile, the company
is receiving payments from its customers each day, in the form of checks, totaling
$50,000. 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. Calculate the company's disbursement float, collection float, and net float, if the
collected funds were available in one day instead of two. (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.)
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

Step: 3

blur-text-image

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

Business Finance

Authors: Eddie McLaney

11th Edition

1292134402, 9781292134406

More Books

Students also viewed these Finance questions

Question

What are some of the topics studied?

Answered: 1 week ago