Question: Anders Inc. issues on average CAD 125,000 in cheques each day which are mailed to suppliers and settled in approximately seven days. The company receives

Anders Inc. issues on average CAD 125,000 in cheques each day which are mailed to suppliers and settled in approximately seven days. The company receives CAD 145,000 in payments from customers by cheque daily which are settled the next day. Anders Inc. issues on average CAD 125,000 in cheques each day which are mailed to suppliers and settled in approximately seven days. The company receives CAD 145,000 in payments from customers by cheque daily which are settled the next day.

What are the disbursement, collection, and net floats. Is Anders managing it floats effectively?

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Disbursement float Time taken for the bank to clear the cheques 7 125000 875000 Collecti... View full answer

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