amount of cash being tied up because of the delay?mat tmeand its actual availability for corporate use is 4 days. What is theProblem 2PROAT MEASUREMENT. On a typical day ABC Company writes checks totaling $3,000These checks clear in 7 days. Simultaneousty, the company receives $1,700. Tne casn isavallable in 2 days on average Calculate the disbursement, the collection, and tie hetfloats and interpret the result.Problem 3OPTIMAL CASH BALANCE. Green Corporation anticipates a cash requirement of $1,000over a 1- month period. It is expected that cash will be paid uniformly. The annualinterest rate is 24 percent. The transaction cost of each borrowing or withdrawal is $30.(a) What is the optimal cash balance? (b) What is the average cash balance? () How muchis the total transaction cost? (d) How much is the total holding cost? (e) How much is thetotal cost of cash?Problem 4ECONOMIC ORDER QUANTITY. Luster Corporation presents the following data: Usagis 400 units per month, cost per order is $20, and carrying cost per unit is $6. Given thesdata, answer the following questions: (a) What is the economic order quantity? (b) Homany orders are required each month? (c) How often should each order be placed? (d) Hois the total cost of inventory?

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delay? Problem 2 FLOAT MEASUREMENT. On a typical day, ABC Company writes checks totaling $3,000. iese checks clear in 7 days. Simultaneously, the company receives $1,700. The cash is available in 2 days on average. Calculate the disbursement, the collection, and the het floats and interpret the result.

delay? Problem 2 FLOAT MEASUREMENT. On a typical day, ABC Company writes checks totaling $3,000. iese checks clear in 7 days. Simultaneously, the company receives $1,700. The cash is available in 2 days on average. Calculate the disbursement, the collection, and the het floats and interpret the result.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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