Kindly answer all the questions and use 360 days in a year in all problems. Thank you. 1. The average weekly check collection is P300,000 while the average weekly check disbursement is P140,000. If the float of the collections and disbursements are 5 days and 4 days respectively, how much is the net float? Answer in absolute amounts.
Kindly answer all the questions and use 360 days in a year in all problems. Thank you. 1. The average weekly check collection is P300,000 while the average weekly check disbursement is P140,000. If the float of the collections and disbursements are 5 days and 4 days respectively, how much is the net float? Answer in absolute amounts.
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
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Kindly answer all the questions and use 360 days in a year in all problems. Thank you.
1. The average weekly check collection is P300,000 while the average weekly check disbursement is P140,000. If the float of the collections and disbursements are 5 days and 4 days respectively, how much is the net float? Answer in absolute amounts.
2. Using the given, compute the cash conversion cycle of the entity.
| Beginning | Ending | Average | |
| Trade recievables | 300,000 | 350,000 | 325,000 |
| Inventory | 200,000 | 800,000 | ??? |
| Trade payables | 300,000 | ??? | 650,000 |
| For the year | |||
| Sales(all on credit) | 2,600,000 | ||
| Purchases | 1,950,000 |
Interpret the given and the cash conversion cycle.
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