Question: A) What is the float and how can a company use it for working capital? Provide an example that illustrates how it happens. B) If

A) What is the float and how can a company use it for working capital? Provide an example that illustrates how it happens.

B) If the company records indicate the following:

Opening amount $10,000

Deposits 30,000

Cheques -22,000

Closing balance $18,000

The bank statement indicates that the opening amount is $10,000, the deposits are 22,000 and the cheques that have cleared are 2,000, what is the amount of the float?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Disney Enterprises issued 7.55% senior debentures (bonds) on July 15, 1993, with a 100-year maturity (i.e., due on July 15, 2093). Suppose an investor purchases one of these bonds on July 15, 2003...

What is the float and how can a company use it for working capital? Provide an example that illustrates how it happens.

Please read the article about strategy and performance and provide a detailed summary of the main argument and learning points. Feel free to include your thoughts and tie it back to any related...

1. Examine the key reasons why a business may not want to hold too much or too little working capital. Provide two (2) examples that illustrate the consequences of either situation. 2. From the...

decision. and your boss (who was imstrumental in your hiring at Coastal) han beten bragging abovil you [because of your considerable fnancal expertise thone Cal Polyl as the promon most able to help...

Features of a Microsoft bond Read and make notes from pages 208 to 212 (From topic The Indenture" to "7.3 Bond Ratings"). Based on what you read, and what you learned in class today, make three posts...

Do the forecast in the order: (1) Income Statement first; (2) balance sheet next; (3) Statement of Cash Flows last Ignore the 6 months figures in the Income Statement and the Statement of Cash Flows...

EON INC., PARTII 26 FINANCIAL STATEMENTS AND TAXES Part I of this case, presented in Chapter 3, discussed the situation of D'Leon Inc, a regional snack foods producer, after an expansion program....

The date is Monday, September 20, 2020. Your company, the Regency Petroleum Company, is faced with a critical decision, and your boss has been bragging about you as the person most able to help...

FINANCIAL STATEMENTS AND TAXES Part I of this case, presented in Chapter 3, discussed the situation of DLeon Inc., a regional snack foods producer, after an expansion program. DLeon had increased...

Until recently, Augean Cleaning Products sold its products on terms of net 60, with an average collection period of 75 days. In an attempt to induce customers to pay more promptly, it has changed its...

write a report and apply one Al ALGORITHM on a selected dataset. ( Classification of data using Logistic Regression algorithm ) Rules: Awareness of related work. References and citation. Paper Length...

Find the functions f g , g f , f f , and g g and their domains. f ( x ) = 3 / x , gx = 2 x + 8

On the My Car Data worksheet, use Advanced Filter to copy a subset of data to another location on this worksheet. A. Copy cells a1:p1 and paste them below the data set in row 52. B. in cell A51 type:...

Use assembly language to write a complete program that will input values for num1 ,num2 and num3 and display the value of the expression ( (num1 ^ 3) * num2 + 5 * ( num2 ^ 2) ) / num3. assume that...

For two spin-1/2 particles you can construct symmetric and antisymmetric spin states (the triplet and singlet combinations, respectively). For three spin-1/2 parti- cles you can construct symmetric...

Computing Residual Income. Suppose the following hypothetical data represent total assets, book value, and market value of common shareholders equity (dollar amounts in millions) for three firms....

1 a) Using the information in the case and Tables 1-3, prepare a flexible budget for the Berkshire Toy Company for the year ended June 30, 2021. Analyze the company's total master (static) budget...

------------------------------------- At the beginning of its first year of operations, Bonita Limited has 4,900, $3 preferred shares and 48,000 common shares. Using the format shown below, allocate...

2. While in class, select a partner and give a one- to two-minute impromptu speech on a topic of your choice. Your partner will write down both negative and positive feedback to share with you, and...

11. Are your speaking notes helpful and effective?

3. Pay attention to how you meet people and the general first impression you receive from them. Ask yourself what makes you feel the way you do about the person. Does the person make you feel...