Problem A: Net Float ABC Corporation has daily cash collections of P50,000 and daily cash disbursements of P60,000. A customer check is credited on the bank statement an average of 5 days from the issue date. Company checks remain outstanding an average of 3 days from the issue date. Required: 1. Collection float 2. Disbursement float 3. Net Float (Place answer in parenthesis if unfavorable.)
Problem A: Net Float ABC Corporation has daily cash collections of P50,000 and daily cash disbursements of P60,000. A customer check is credited on the bank statement an average of 5 days from the issue date. Company checks remain outstanding an average of 3 days from the issue date. Required: 1. Collection float 2. Disbursement float 3. Net Float (Place answer in parenthesis if unfavorable.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem A: Net Float
ABC Corporation has daily cash collections of P50,000 and daily cash disbursements of P60,000. A customer check is credited
on the bank statement an average of 5 days from the issue date. Company checks remain outstanding an average of 3 days
from the issue date.
Required:
1. Collection float
2. Disbursement float
3. Net Float (Place answer in parenthesis if unfavorable.)
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