Each business day, on average, a company writes checks totaling $37,500 to pay its suppliers. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Each business day, on average, a company writes checks totaling $37,500 to pay its suppliers. The usual clearing time for the checks is six days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $48,500. The cash from the payments is available to the firm after four 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 two days instead of four. (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 Collection float Net float b. Disbursement float Collection float Net float Each business day, on average, a company writes checks totaling $37,500 to pay its suppliers. The usual clearing time for the checks is six days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $48,500. The cash from the payments is available to the firm after four 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 two days instead of four. (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 Collection float Net float b. Disbursement float Collection float Net float
Expert Answer:
Answer rating: 100% (QA)
a To calculate the companys disbursement float collection float and net float with a clearing ... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Posted Date:
Students also viewed these finance questions
-
Each business day, on average, a company writes checks totaling $13,400 to pay its suppliers. The usual clearing time for the checks is four days. Meanwhile, the company is receiving payments from...
-
Question Case study 1 Harrods department store has a new promotional program that offers a free gift-wrapping service for its customers. Harrods department stores customer service department has...
-
Rennie Plant Service completed a special landscaping job for Brenton Company. Rennie uses ABC and has the following predetermined overhead allocation rates The Brenton job included $1,500 in plants;...
-
Refer to the information in E18-15 for Zdon Inc. Assume that the company follows the taxes payable method of accounting for income taxes under ASPE. During the year, Zdon Inc. made tax instalment...
-
Western Boot Co. sells men's, women's, and children's boots. For each type of boot sold, it operates a separate department that has its own manager. The manager of the men's department has a sales...
-
Identify the most appropriate approach and then design. Provide a rationale as to why this approach and design would be most appropriate. Develop a hypothetical research scenario that would...
-
Archer Inc. issued $4,000,000 par value, 7% convertible bonds at 99 for cash. If the bonds had not included the conversion feature, they would have sold for 95. Prepare the journal entry to record...
-
1. Convert the following iteration Even method to recursive method: (Ex: EVEN(0,10) Void enas iteration even(int Lint n) { } int i=1: while(i
-
130 observations generated by scores on a psychological test administered to Peru- vian teenagers (ages 15, 16, and 17). For each of these teenagers the gender (male = 1, female = 2) and...
-
Length of a: Length of b: Find the unknown lengths in the pair of similar triangles. B Q 56 in. b 35 in. 80 in. P A R 20 in. a
-
Staffing Process | A Management Function - YouTube Determine one thing you expect to learn in this course. Then, pick a company, go to their website, and read through their information on jobs and...
-
Based on this schedule, submit a memo that answers the following questions When is the project estimated to be completed? How many working days will it take?
-
Task 2 (2.0 marks) Implement the following data manipulations on a collection of documents transport. (1) Remove a mechanic John Fox. (2) Remove information about a date of birth (dob) from a...
-
Producing one yard of cloth requires 1 worker and 5 acres of land, while producing one pound of food requires 1 worker and 6 acres of land. Both countries have 55 workers: the U.S. has 160 acres of...
-
Question 1 An effective performance management system informs top performers of their value, encourage communication between managers and their employees, establish consistent standards for...
-
In Exercises evaluate the limit, using LHpitals Rule if necessary. lim 07x cos x X
-
Red Zeppelin Corporation follows a strict residual dividend policy. Its debt-equity ratio is 2.5. a. If earnings for the year are $190,000, what is the maximum amount of capital spending possible...
-
Calculating Annuity Values Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $20,000 per month for 20...
-
Calculating WACC Maxwell Industries has a debt-equity ratio of 1.5. Its WACC is 11 percent, and its cost of debt is 8 percent. The corporate tax rate is 35 percent. a. What is Maxwells cost of equity...
-
Approximately 50,000 new titles, including new editions, are published each year in the United States, giving rise to a $25 billion industry in 2001. In terms of percentage of sales, this industry...
-
When you think of political persuasion, you may think of the effortsthat political campaigns undertake to persuade you that their candidate is betterthan the other candidate. In truth, campaigns are...
-
Exeter, Inc., is a catalog firm that sells products in a number of different catalogs that it owns. The catalogs number in the dozens but fall into nine basic categories: 1. Clothing 2. Housewares 3....
Study smarter with the SolutionInn App