Each business day, on averagem a company writes checks totaling $36,000 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 $47,000. The cash from the payments is available to the firm after two days. Calculate the company's disbursement float, collection float, and net float Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in one day instead of two.

Each business day, on averagem a company writes checks totaling $36,000 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 $47,000. The cash from the payments is available to the firm after two days. Calculate the company's disbursement float, collection float, and net float Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in one day instead of two.

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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