Each business day, on average, a company writes checks totaling $13,200 to pay its suppliers. The usual clearing time for the checks is four days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $24,200. The cash from the payments is available to the firm after two days. a. Calculate the company's disbursement float, collection float, and net float. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. If the collected funds were available in one day instead of two, what would be the company's disbursement float, collection float, and net float? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) a. Disbursement float a. Collection float a. Net float Answer is not complete. $ 52,800 b. Disbursement float $ 52,800 b. Collection float b. Net float
Each business day, on average, a company writes checks totaling $13,200 to pay its suppliers. The usual clearing time for the checks is four days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $24,200. The cash from the payments is available to the firm after two days. a. Calculate the company's disbursement float, collection float, and net float. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. If the collected funds were available in one day instead of two, what would be the company's disbursement float, collection float, and net float? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) a. Disbursement float a. Collection float a. Net float Answer is not complete. $ 52,800 b. Disbursement float $ 52,800 b. Collection float b. Net float
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Each business day, on average, a company writes checks totaling $13,200 to pay its
suppliers. The usual clearing time for the checks is four days. Meanwhile, the company is
receiving payments from its customers each day, in the form of checks, totaling $24,200.
The cash from the payments is available to the firm after two days.
a. Calculate the company's disbursement float, collection float, and net float. (A negative
answer should be indicated by a minus sign. Do not round intermediate
calculations and round your answers to the nearest whole number, e.g., 32.)
b. If the collected funds were available in one day instead of two, what would be the
company's disbursement float, collection float, and net float? (A negative answer
should be indicated by a minus sign. Do not round intermediate calculations and
round your answers to the nearest whole number, e.g., 32.)
a. Disbursement float
a. Collection float
a. Net float
Answer is not complete.
$
52,800
b. Disbursement float
$
52,800
b. Collection float
b. Net float
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