Each business day, on average, a company writes checks totaling $41,000 to pay its suppliers. The usual clearing time for the checks is three days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $52,000. 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. Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in one day instead of two. (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.)

Each business day, on average, a company writes checks totaling $41,000 to pay its suppliers. The usual clearing time for the checks is three days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $52,000. 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. Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in one day instead of two. (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.)

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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Each business day, on average, a company writes checks totaling $39,000 to pay its suppliers. The usual clearing time for the checks is three days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $50,000. 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. Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in one day instead of two. (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 Collection float Net float b. Disbursement float Collection float Net float
Larry Imports writes three checks a day for an average amount of $11,500 each. These checks generally clear the bank 2.1 days after they are written. In addition, the firm generally receives and deposits checks amounting to $19,500 each day. All deposits are available the next day. What is the firm's net float? Multiple Choice Net disbursement float of $91,950 Net collection float of $19.500 Net collection float of $91.950 Net collection float of $52.950 Net disbursement float of $52.950
Ted's Toys just reconciled its bank account and has $12,300 in outstanding deposits and $31,400 in checks outstanding. The firm's checkbook has a positive balance. The firm sells on a cash basis only and deposits its receipts on a daily basis. The deposited funds are available to the firm the following day. The firm writes and mails checks on a daily basis also. These checks generally clear the bank in three days. What do you know about the firm's float given this information? A. The firm has disbursements float but no collection float. B. The collection float exceeds the disbursement float. C. The firm has a net collection float. D. The disbursement float exceeds the collection float. E. Since transactions occur daily, the firm has no float.
If a firm has sales of $22,242,000 a year, and the average collection period for the industry is 35 days, what should this firm’s accounts receivable be if the firm is comparable to the industry? Assume there are 365 days in a year. Do not round intermediate calculations. Round your answer to the nearest dollar. $
Please Solve this problem
Calculating 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 $23,800. 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.b. How would your answer to part (a) change if the collected funds were available in one day instead of two?
Hathaway Company’s general ledger shows a cash account balance of $23,290 on July 31, 2024. Cash sales of $1,839 for the last three days of the month have not yet been deposited. The bank statement dated July 31 shows bank service fees of $51 and an NSF check from a customer of $310. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,470. The bank statement shows a balance of $22,560 on July 31. Required: 1. Prepare a bank reconciliation to calculate the correct balance of cash on July 31, 2024. 2. Record the necessary entry(ies) to adjust the balance for cash.
A customer in a bank has made a balance withdrawal transaction in the last 30 days. In the last 28 days, the customer routinely made cash withdrawals of $100000. In the last two days, this customer made a withdrawal amounting to$7500000 and $5000000. Based on the transaction data, which value is the most appropriate to describe the central tendency of the distribution of customer cash withdrawal data? a) $510000 b) $100000 c) $275000 d) $426000
What's the answer?
Modos Company has deposited $4,080 in checks received from customers. It has written $1,540 in checks to its suppliers. The initial bank and book balance was $430. If $3,550 of its customers' checks have cleared, but only $420 of its own, calculate its float.
How much is the remittance of MedLab Inc. to the bank by the end of September?

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