On January 25, Coot Company has $250,000 deposited with a local bank. On January 27, the company
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On January 25, Coot Company has $250,000 deposited with a local bank. On January 27, the company writes and mails checks of $20,000 and $60,000 to suppliers. At the end of the month, Coot’s financial manager deposits a $45,000 check received from a customer in the morning mail and picks up the end-of-month account summary from the bank. The manager notes that only the $20,000 payment of the 27th has cleared the bank. What are the company’s ledger balance and payment float? What is the company’s net float?
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Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
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