Calculate the company disbursement float

Assignment Help Business Economics
Reference no: EM131868768

Each business day, on average, a company writes checks totaling $23,400 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 $38,100. 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.

b. How would your answer to part (a) change if the collected funds were available in one day instead of two?

Reference no: EM131868768

Questions Cloud

Explain how the regulations govern policy options : Describe the tension between the regime and the current situation. Explain the consequences to the firm of the outcome of the case.
What are examples of regulatory issues : What are examples of regulatory issues that affect the controlling aspect of a strategic plan? What are examples of organizations that have failed to comply.
How will this change in policy affect accounts receivable : In reaction to sales by its main competitor, Sewage Spray, Essence of Skunk is considering a change in its credit policy to terms of 3/10.
Review problem and regarding strategic plan : Managers should be ultimately responsible for all-things strategic plan. How about looking at ourselves (whatever employee level that may be).
Calculate the company disbursement float : a. Calculate the company's disbursement float, collection float, and net float. b. How would your answer to part (a) change if the collected funds.
Which elements of the bmc are related to the value chain : Which elements of the BMC are related to the value chain, customer discovery and business model economics? What is a value proposition?
What is the average daily float : These are delayed three days on average. What is the average daily float? Assume 30 days in a month.
Evaluate three forms of business organizations : Evaluate three forms of business organizations including advantages and disadvantages related to the business the ladies plan to operate.
How long do you have to pay before the account is overdue : a. How long do you have to pay before the account is overdue? If you take the full period, how much should you remit?

Reviews

Write a Review

Business Economics Questions & Answers

  Discuss the various forms of business ownership

You are an entrepreneur who is interested in starting up a community mental health center. You are considering the various forms of business ownership.

  Identify the comparative advantage of each country

Country A can produce either 10X and 0Y or 0x and 20Y. Country B can produce either 30X and 0Y or 0X and 40Y. Identify the opportunity cost of producing each good for each country. Identify the comparative advantage of each country

  High concentrations of mercury

According to a recent report in The Economist, the price of tuna has been rising rapidly in the past few years. The prices has risen due to a rightward shift in the demand curve caused by a shift in consumers' taste to healthier sources of protein. D..

  How would a utilitarian allocate the water

Ten people are shipwrecked with water for only ten person days, but it will take at least 10 days to reach shore( a person dies after ine day without water) How would a Utilitarian allocate the water? Draw the production possibility curve for two peo..

  Trends impact marketing planning and implementation

What are the key trends impacting consumer behavior that may develop within the next 5 years? Consider the past 5 years and the expansion of movements such as social media, mobile media, and other emerging technologies, and respond to the following: ..

  Q suppose that a ton of steel currently sells for 2000in

q. suppose that a ton of steel currently sells for 2000in united states and for euro2000 in germany. the exchange rate

  Two identical small poor countries-country will the growth

Two identical small poor countries, Country A and Country B, have a well educated population but small capital stock. Initially they both have closed economies. Country B opens up for the world and can be observed as a small open economy. In what cou..

  Increase government spending by building more libraries

Suppose that the president has decided to increase government spending by building more libraries. The legislation was rushed through Congress and enacted without any delay. From here, the libraries will take 10 months to plan and 2 years to build. W..

  Using amtrak and usinggraphical analysis

Using amtrak and usinggraphical analysis to analyze the issues presented in the current event (possible graphs production function, total and marginal product curves, curves, MR = MC, long and short run equilibrium, or any other curve or any other gr..

  Weighted averages from the other websites

Why does using the beta with the excel method might be different than using the weighted averages from the other websites?

  Project scope statement

A project scope statement is used to define the end result of a project. Its purpose is to define as clearly as possible what the project will deliver to the customer. What questions should the scope statement answer?

  Short-run elasticity of demand for unleaded gasoline

The short-run elasticity of demand for unleaded gasoline in the United States is estimated to be –0.54. With this in mind, the CEO of Texaco has decided to increase the price of Texaco’s unleaded gasoline by 5% in the U.S. markets. What do you predic..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd