Your neighbour goes to the post office once a month and picks up two cheques, one for

Question:

Your neighbour goes to the post office once a month and picks up two cheques, one for $14,000 and one for $5,000. The larger cheque takes four days to clear after it is deposited; the smaller one takes 3 days. Assume 30 days in a month.

a. What is the total float for the month?

b. What is the average daily float?

c. What are the average daily receipts and weighted average delay?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0071051606

8th Canadian Edition

Authors: Stephen A. Ross, Randolph W. Westerfield

See More Books

Question Posted: Jun 26, 2019 09:35 AM

See More Questions

Loch Alva Inc. disburses cheques every two weeks that average $86,000 and take seven days to clear. How much interest can the company earn annually if it delays transfer of funds from an...
The Thaddee Corporation sells on credit terms of net 30. Its accounts are, on average, 7 days past due. If annual credit sales are $9.3 million, what is the companys balance sheet amount in accounts...
Lepreau Books Corporation has an agreement with Hampton Bank whereby the bank handles $5 million in collections a day and requires a $350,000 compensating balance. Lepreau Books is contemplating...
Figure shows a cycle consisting of five paths: AB is isothermal at 300 K, BC is adiabatic with work = 5.0 J, CD is at a constant pressure of 5 atm, D E is isothermal, and EA is adiabatic with a...
Interview the owners of two local small businesses. One business should be organized as a corporation and the other as either a sole proprietorship or a partnership. Inquire as to: Why this form of...
You will use a CAS to help find the absolute extrema of the given function over the specified closed interval. Perform the following steps. a. Plot the function over the interval to see its general...
Nereus Montemayor was an employee of VZ Hogs, a company that raises hogs and produces hog feed. VZ Hogs used an extruder manufactured by Sebright Products, Inc. to create hog feed out of discarded...
Job costing, accounting for manufacturing overhead, budgeted rates. The Fasano Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing...
An annuity, paid in advance, is indexed to inflation at a rate of r% per period. What is the present value of this indexed annuity given a requirement of an effective investment rate of i% per period...
Speed World Cycles sells high-performance motorcycles and motocross racers. One of Speed World's most popular models is the Kazomma 900 dirt bike. During the current year, Speed World purchased eight...
Each business day, on average, a company writes cheques totalling $12,000 to pay its suppliers. The usual clearing time for the cheques is four days. Meanwhile, the company is receiving payments from...
Sussex Inc., a large fertilizer distributor based in Nova Scotia, is planning to use a lockbox system to speed up collections from its customers located on the West Coast. A Vancouver-area bank will...
Khushboos basis in her 25-percent interest in the Rishi Partnership is $40,000 at the start of the current year. During the current year, Rishi reports ordinary business income of $80,000. Rishi also...
A Ltd produces single product. The company has the following information in year N: Selling price per unit $60 Variable cost per unit 40 Fixed costs of month 5,000 64,800 (of year) Budgeted sales per...
If the earnings per share of a company is $3.85 and the earnings yield is 2.5%, what is the price per share? $154.00 $64.94 $1.54 HE 1111
Harry Draco Ltd manufactures laboratory equipment that requires a highly skilled labour force. The management has been experiencing inexplicable variances in terms of labour efficiency for quite some...
a. Glimmer 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 sparkle should proceed-or-not if the...
A production cost center charged budgeted overheads to cost units using a machine hour rate based on the following estimates: Total machine hours 10,000 Total fixed production overhead $50,000 Answer...
Per the textbook, the FASB has not taken a position on the use of push-down accounting. Take a position on whether push-down accounting provides the most relevant information for both internal and...
For the following exercises, find the inverse of the function and graph both the function and its inverse. f(x) = 4 x 2 , x 0
There are two stock markets, each driven by the same common force, F, with an expected value of zero and standard deviation of 10 percent. There are many securities in each market; thus, you can...
Assume that the returns on individual securities are generated by the following two-factor model: R it = E (R it ) + b Î² ij F 1t + Î² t2 F 2t Here: R it is the return on...
Consider a levered firms projects that have similar risks to the firm as a whole. Is the discount rate for the projects higher or lower than the rate computed using the security market line? Why?
What are the ethical, cultural, and socioeconomic dimensions of biodiversity conservation, including indigenous rights, traditional ecological knowledge, and the equitable distribution of...
Describe the common Linux file systems Describe the Linux Logical Volume Manager Explain the Linux boot process List and Describe the Linux file system organization Explain methods to locate Linux...
What year was Linux created? What type of User Face is Linux ? What are the features in Linux? What is the historical significance of Linux? What is the current version of Linux?

Your neighbour goes to the post office once a month and picks up two cheques, one for

Question:

Step by Step Answer:

a Total float 414000 35000 Total float 71000 b The average daily ...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Business questions