Please correct answer and don't used hand raiting Madison Corner writes 43 checks a day for an average amount of $549 each. These checksgenerally clear the bank 2.75 days after they are written. In addition, the firm generallyreceives 80 checks with an average amount of $640 each. Deposited amounts are availableafter an average of 2.25 days. What is the amount of the firm's collection float? $23,607 $50,281 $115,200 $51,200 $64,919

The problem involves the determination of the collection float. The float is essentially…

Answered: Madison Corner writes 43 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

See similar textbooks

Similar questions

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
Shannara Manufacturing writes 30 checks a day for an average amount of $497 each that generally clear 3 days after they are written. In addition, the firm generally receives 38 checks each day with an average amount of $ 562 each that are available after 2.5 days. Is this a collection or disbursement float? What is the amount of the float?
On a typical day, a company writes 48 checks worth a total of $8,925 that clear in 3 days. The company also collects 60 checks worth a total of $9,940 that clear in 2.5 days. Is this a collection or disbursement float? What is the amount of the float?
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?
Hazelton Manufacturing prepares a bank reconciliation at the end of every month. At the end of May, the general ledger checking account showed a balance of $1,480 and the bank statement showed a bank balance of $1,325. Outstanding checks totaled $410 and deposits in transit were $210. The bank statement listed service charges of $90 and NSF checks totaling $265. The corrected cash balance is: Multiple Choice $860. $770. $1,325.
In the month of May, Fredricksburg Company Inc. wrote checks in the amountof $64,750. In June, checks in the amount of $88,606 were written. In May,$59,276 of these checks were presented to the bank for payment, and $76,181in June. What is the amount of outstanding checks at the end of June?a. $12,425b. $5,474c. $17,899d. $24,850
On a typical day, a company writes 85 checks worth a total of $10,800 that clear in 3.75 days. The company also collects 98 checks worth a total of $14,830 that clear in 3.25 days. Is this a collection or disbursement float? What is the float value?
Next, consider the case of Washburn Flooring Company: The management at Washburn Flooring has determined that it takes an average of 6 days for checks the company writes to clear its bank account. Cash receipts from customers are reflected in Washburn's bank account an average of 2 days after the checks are received. On an average day, Washburn writes checks that total $40,000, and it receives checks from customers that total $50,000. Compute the collection float, the disbursement float, and the net float in dollars in the following table. (Note: By definition, collection float is always considered negative, and disbursement float is always positive. Both should be shown as positive numbers here. The net float, however, should be shown as positive if it is favorable and as negative if it is unfavorable.) Washburn Flooring Company Float Calculations Collection float Disbursement float Net float Given this information, you can deduce that on an average day, Washburn Flooring's bank…
6
i need the answer quickly
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.
You're doing a monthly bank reconciliation and have the following information: Question Current book balance: $20,250 Balance per bank statement: $18,000 Outstanding checks: $2,000 Bank fees: $150 Deposits in transit: $8,000 What is the reconciled cash amount?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS