Company disbursement float-collection float and net float

Assignment Help Financial Management

Reference no: EM131608274

Each business day, on average, a company writes checks totaling $12,600 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 $23,600. 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. (Negative amounts should be indicated by a minus sign.) Disbursement float $ Collection float $ Net float $

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? (Negative amounts should be indicated by a minus sign.) Disbursement float $ Collection float $ Net float $

Reference no: EM131608274

Questions Cloud

How much was spending in 2000 : The consumer price Index had a value of 201.6 in 2006 and a value of 172.2 in 2000. Adjusted for inflation, how much was spending in 2000?

Calculate the value of pie from the infinite series : Print a table that shows the value of p approximated by one term of this series, by two terms, by three terms, and so on. How many terms of this series.

Consumes coffee and sugar together : Kate's utility function includes coffee (c) and sugar (s). She only consumes coffee and sugar together, and she only consumes in the ratio of one unit.

Create a socioeconomic profile of your choice : What is the level of this patient's income, education, work experience, and cultural influences?

Company disbursement float-collection float and net float : 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?

Perfectly competitive market : On Perfect Competition or Competitive Market, or Perfectly Competitive Market, what are the necessary conditions for this type of a market structure to exist.

Discuss the essential quality-of-care issues involved : Discuss the essential quality-of-care issues involved in this case. What is the role of Telemedicine in your community and how do you access it?

Discuss online education virtual classrooms and no set hours : Select an article related to your research project topic. you are going to analyze a single article related to your topic.

Overview of the purpose for each of the best doctors : Present a brief overview of the purpose for each of the Best Doctors, Inc. products. How are the "Best Doctors" of each type determined?

User Account

All Pages