What is float? Why is it important to cash management?
Answer to relevant QuestionsWhat are the three components of float? Which are under the control of the firm seeking to reduce collection float? How does remote capture reduce float? How is the financial manager involved in the management of inventories? Given Robinson’s 2013 and 2014 financial information presented in problems 3 and 4, (a) Compute its operating and cash conversion cycle in each year. (b) What was Robinson’s net investment in working capital each year? Of its monthly sales, The Kingsman Company historically has had 25-percent cash sales with the remainder paid within one month. Each month’s purchases are equal to 75 percent of the next month’s sales forecast; suppliers ...
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