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. Inaddition, 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 ChoiceNet disbursement float of $91,950Net collection float of $19.500Net collection float of $91.950Net collection float of $52.950Net disbursement float of $52.950

The answer is Net collection float of -$52,950.Explanation:Net float is the difference between the…

Answered: Larry Imports writes three checks a day…

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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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.
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Fruit Salad Company prepared the following bank reconciliation in November:Balance per bank- P10,000,000Deposit in transit- P500,000Outstanding checks- P1,500,000There were total deposits of P6,000,000 including P1,000,000 of proceeds from loan, and charges for disbursements of P8,800,000 per December bank Statement including bank charges of P30,000 and NSF check of 100,000. All reconciliation items in November 30 cleared the bank on December 31.Check outstanding amounted to P1,500,000 and deposits in transit totaled P1,300,000 on December 31. What is the amount of cash disbursement per book in December?
Company Deli writes checks averaging P30,000 per day that require 4 days to clear. By what amount will its book balance be less than its bank balance? a. P30,000.00b. P60,000.00c. P90,000.00d. P120,000.00e. P150,000.00
Prepare Bryant's bank reconciliation at November 30. | E4-21 Tim Wong operates a FedEx Kinko's store. He has just received the monthly bank statement at May 31, 2020, from Royal Bank of Canada, and the statement shows an ending balance of $595. Listed on the statement are an EFT customer collection of $300, a service charge of $12, two NSF cheques totalling $120, and a $9 charge for printed cheques. In reviewing his cash records, Wong identifies outstanding cheques totalling $603 and a May 31 deposit in transit of $1,788. During May, he recorded a $290 cheque for the salary of a part-time employee as $29. Wong's Cash account shows a May 31 cash balance of $1,882. How much cash does Wong actually have at May 31?
Beleaguered State Bank (BSB) holds $200,000,000 in deposits and maintains a reserve ratio of 10%, which also is the reserve requirement. On paper, write the T account for BSB and use it to answer the rest of this question. Now suppose that BSB's largest depositor withdraws $10,000,000 from her account one day. On paper, show the effect of this on the T account. How many dollars of cash reserves does BSB need to raise to be allowed to open for business the next morning?
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On July 31, 2022, Carla Vista Co. had a cash balance per books of $6,335.00. The statement from Dakota State Bank on that date showed a balance of $7,885.80. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank service charge for July was $19.00. 2. The bank collected $1,715.00 from a customer for Carla Vista Co. through electronic funds transfer. 3. The July 31 receipts of $1,394.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31. 4. Company check No. 2480 issued to L. Taylor, a creditor, for $374.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $347.00. 5. Checks outstanding on July 31 totaled $2,046.10. 6. On July 31, the bank statement showed an NSF charge of $770.00 for a check received by the company from W. Krueger, a customer, on account.…
The table below is the balance sheet for the Oilers Bank, which has a target reserve ratio of 5%. Liabilities/Equity Demand Deposits Shareholders' equity Assets $4,000 62,000 17,000 9,000 Reserves $72,000 20,000 Loans Securities Fixed assets Total 92,000 Total 92,000 a. The Oilers Bank is over-reserved v by $ b. The bank makes a loan equal to the excess reserves and the borrower writes a cheque (for the full amount of the loan) to another customer of the bank, who then deposits it. The new amount of excess reserves is $ c. Instead, the cheque written by the borrower is cleared against the Oilers Bank (the cheque was written to a customer of another bank). The amount of excess reserves held by the Oilers Bank is $ 14 of 40 Next > < Prev
Epsilon Corporation has unadjusted cash in bank balances of P1,000,000 and P900,000 at the beginning and end of the month, respectively. Book debits totaled P1,800,000. An analysis with recent bank statements showed deposits in transit of P350,000 at the start of the month, deposits in transit of P220,000 at the end of the month, outstanding checks of P80,000 at the beginning of the month, and outstanding checks of P70,000 at the end of the month. Credit memos were P200,000 last month while it is P50,000 for this month. Bank service charge totaled P30,000 last month. A P120,000 customer check deposited this month was returned by the bank due to insufficient fund. How much is the unadjusted total bank credit for the month?
25. You are doing the bank reconcilement. The company wrote 30 checks this month and all have cleared the bank except for three checks totaling $43,908. How would this be handled on the bank reconcilement?

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