In a typical month, the Hampton Corporation receives 80 checks totaling $139,000. These are delayed four days on average. What is the average daily float? Assume 30 days in a month.
Answer to relevant QuestionsCritics have charged that compensation to top managers in the United States is simply too high and should be cut back. For example, focusing on large corporations, David Novak of fast food operator Yum! Brands has been one ...Purple Feet Wine, Inc., receives an average of $17,000 in checks per day. The delay in clearing is typically three days. The current interest rate is .017 percent per day.a. What is the company’s float?b. What is the most ...Given the following information, calculate the target cash balance using the BAT model:Annual interest rate...... 4.5%Fixed order cost....... $25Total cash needed....... $10,200How do you interpret your answer?Rise Against Corporation has determined that its target cash balance if it uses the BAT model is $5,100. The total cash needed for the year is $31,000, and the order cost is $10. What interest rate must Rise Against be using?The Harrington Corporation is considering a change in its cash-only policy. The new terms would be net one period. Based on the following information, determine if Harrington should proceed or not. The required return is 2.5 ...
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