Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Each day, on average, a company writes cheques totaling $11,750 to pay its suppliers. The usual total processing and clearing time for the cheques is

Each day, on average, a company writes cheques totaling $11,750 to pay its suppliers. The usual total processing and clearing time for the cheques is 3 days. Meanwhile, the company receives payments from its customers each day, in the form of cheques, totaling an average of $13,500. The cash from the payments received is available to the firm after 2 days. Calculate the companys average daily disbursement float, collection float, and net float. (Negative amounts should be indicated by a minus sign.Do not use commas in your answers!) Average Daily Disbursement float = Average Daily Collection float = Average Daily Net float =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions