13. How much in total do they owe you on Wednesday? 14. How much would extra cash throughout the year would you have if you did not lend them any amount? 15. How much would you earn if you invested the cash instead of lending them to your friends?
13. How much in total do they owe you on Wednesday? 14. How much would extra cash throughout the year would you have if you did not lend them any amount? 15. How much would you earn if you invested the cash instead of lending them to your friends?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
13. How much in total do they owe you on Wednesday?
14. How much would extra cash throughout the year would you have if you did not lend them any amount?
15. How much would you earn if you invested the cash instead of lending them to your friends?
![(C) Receivables and Cash: Understanding Collection Float
Your seven friends often go to you when they are out of cash. The following is the usual trend:
Amoun Day
Borrowed
P 1,000 Monday
Day Paid
Days
Outstanding
t
Anna
Wednesda 3
1,000 Tuesday
1,000 Wednesday
Bob
Thursday
Friday
3
Charle
1,000 Thursday
1,000 Friday
1,000 Saturday
1,000 Sunday
Doug
Saturday
Sunday
Monday
Tuesday
3
Ellen
3
Fred
3
Georg
3
e
If you did not lend them the money, you could have invested the amount in marketable securities which gives 5% interest.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb1a1c2ea-94b4-463c-989f-ffc5b4989d64%2F92443bc5-0543-497a-80bd-4008b09050b4%2F8oxlvea_processed.png&w=3840&q=75)
Transcribed Image Text:(C) Receivables and Cash: Understanding Collection Float
Your seven friends often go to you when they are out of cash. The following is the usual trend:
Amoun Day
Borrowed
P 1,000 Monday
Day Paid
Days
Outstanding
t
Anna
Wednesda 3
1,000 Tuesday
1,000 Wednesday
Bob
Thursday
Friday
3
Charle
1,000 Thursday
1,000 Friday
1,000 Saturday
1,000 Sunday
Doug
Saturday
Sunday
Monday
Tuesday
3
Ellen
3
Fred
3
Georg
3
e
If you did not lend them the money, you could have invested the amount in marketable securities which gives 5% interest.
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