Baghiben Each business day, on average, a company writes checks totaling $13,200 to pay itssuppliers. The usual clearing time for the checks is four days. Meanwhile, the company isreceiving payments from its customers each day, in the form of checks, totaling $24,200.The cash from the payments is available to the firm after two days.a. Calculate the company's disbursement float, collection float, and net float. (A negativeanswer should be indicated by a minus sign. Do not round intermediatecalculations and round your answers to the nearest whole number, e.g., 32.)b. If the collected funds were available in one day instead of two, what would be thecompany's disbursement float, collection float, and net float? (A negative answershould be indicated by a minus sign. Do not round intermediate calculations andround your answers to the nearest whole number, e.g., 32.)a. Disbursement floata. Collection floata. Net floatAnswer is not complete.$52,800b. Disbursement float$52,800b. Collection floatb. Net float

a. Checks written to pay suppliers per business day: $13,200Clearing time for checks: 4 daysChecks…

Answered: Each business day, on average, a…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 2P

See similar textbooks

Similar questions

Each business day, on average, a company writes checks totaling $14000 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 $25000. The cash from the payments is available to the firm after two days. a. Calculate the company’s disbursement float, collection float, and net float.
Each business day, on average, a company writes checks totaling $37,500 to pay its suppliers. The usual clearing time for the checks is six days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $48,500. The cash from the payments is available to the firm after four days. a. Calculate the company’s disbursement float, collection float, and net float. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in two days instead of four. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Each business day, on average, a company writes checks totaling $19,500 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 $24,600. The cash from the payments is available to the firm after two days. a. Calculate the company’s disbursement float, collection float, and net float. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. ) b. If the collected funds were available in one day instead of two, what would be the company's disbursement float, collection float, and net float? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.) a. Disbursement float ______ a. Collection float ______ a. Net float ______ b. Disbursement float ______ b. Collection float ______ b. Net float ______
Each business day, on average, a company writes checks totaling $36,500 to pay its suppliers. The usual clearing time for the checks is five days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $47,500. The cash from the payments is available to the firm after three days. a. Calculate the company’s disbursement float, collection float, and net float. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in two days instead of three. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
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 average, a company writes checks totaling $41,000 to pay its suppliers. The usual clearing time for the checks is three days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $52,000. The cash from the payments is available to the firm after two days. a. Calculate the company's disbursement float, collection float, and net float. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in one day instead of two. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Each business day, on average, a company writes checks totaling $39,000 to pay its suppliers. The usual clearing time for the checks is three days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $50,000. The cash from the payments is available to the firm after two days. a. Calculate the company's disbursement float, collection float, and net float. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in one day instead of two. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) a. Disbursement float Collection float Net float b. Disbursement float Collection float Net float
Each business day, on average, a company writes checks totaling $30,000 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 $50,000. The cash from the payments is available to the firm after two days. a) Calculate the company’s disbursement float and net float. b) How would your answer to part (a) change if the collected funds were available in one day instead of two?
Suppose that the company has a balance sheet as follows at the beginning of the year. In that single year, the following transactions occur. One of the customers pays his $1,400 amount of debt by check. The company immediately pays its $1,200 amount of debt by endorsing these checks. After a while, another customer pays $900 cash for an outstanding debt. The company deposits $800 of this amount to its bank. Then, the company decides to pay one half of its debts via EFT(electronic funds transfer), and the other half of its debts by issuing its own checks. Lastly, the payee cashes these checks from the bank. Assuming that there are no more transactions throughout the year, what would be the total asset at the end of that year?
Suppose that the company has a balance sheet as follows at the beginning of the year. In that single year, the following transactions occur. One of the customers pays his 1.400 TL amount of debt by check. The company immediately pays its 1.200 TL amount of debt by endorsing these checks. After a while, another customer pays 900 TL cash for an outstanding debt. The company deposits 800 TL of this amount to its bank. Then, the company decides to pay one half of its debts via EFT, and the other half of its debts by issuing its own checks. Lastly, the payee cashes these checks from the bank. Assuming that there are no more transactions throughout the year, what would be the total asset at the end of that year? A) 1.000 TL B) 1.400 TL C) 1.800 TL D) 2.000 TL
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?
A company has a 30-day credit terms to its customers. It has a total of P120,000 in their accounts receivable, along with an annual revenue of P800,000. Compute for the Accounts Receivable days. Did the company meet its credit terms for the customers? Why? What advise can you give to the company regarding proper accounts receivables management?

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS