Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I HAVE THE ANSWERS ADDED IN FOR ALL PARTS EXCEPT THE NET FLOAT OF PART B. PLEASE SOLVE FOR THIS. Each business day, on average,

I HAVE THE ANSWERS ADDED IN FOR ALL PARTS EXCEPT THE NET FLOAT OF PART B. PLEASE SOLVE FOR THIS.

Each business day, on average, a company writes checks totaling $12,200 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 $23,200. 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 and round your answers to the nearest whole number, e.g., 32.)

Disbursement float $48800
Collection float $ -46400
Net float $ 2400

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 and round your answers to the nearest whole number, e.g., 32.)

Disbursement float $ 48800
Collection float $. -23200
Net float $ ????

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

Financial Management For Nurse Managers

Authors: J. Michael Leger

5th Edition

1284230937, 9781284230932

More Books

Students also viewed these Finance questions

Question

Define facework and identify three primary facework strategies

Answered: 1 week ago