Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help solving Each business day, on average, a company writes checks totaling $19,500 to pay its suppliers. The usual clearing time for the checks

Need help solving
image text in transcribed
Each business day, on average, a company writes checks totaling $19,500 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 $24,600. The cash from the payments is available to the firm after two days. o. Calculate the company's disbursement float, collection float, and net float. Note: 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 comparny's disbursement float, collection float, and net float, if the collected funds were available in one day instead of two days. Note: A negotive onswer should be indicated by o minus sign. Do not round intermediate colculations and round your answers to the nearest whole number, e.g., 32

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

International Finance

Authors: Keith Pilbeam

3rd Edition

1403948372, 978-1403948373

More Books

Students also viewed these Finance questions

Question

What is a hedge ratio?

Answered: 1 week ago

Question

Do teachers across cultures differ in immediacy? Explain.

Answered: 1 week ago