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 $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

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

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Tokyo Corporation receives checks that amount to P400,000 each day, whereas the amount of checks the company writes each day averages P350,000. It normally takes three days for incoming checks to clear through the banking system, and outgoing checks generally clear in four days. What is the firm’s net float? No decimal point. Use comma.
Assume the following facts for Taehyung Company: The month-end bank statement shows a balance of P40,000; outstanding checks total P2,000; a deposit of P8,000 is in transit at month-end; and a check for P400 was erroneously charged against the account by the bank. What is the correct cash balance at the end of the month?
The daily cash inflows of a company amount to $ 65,000.00. A recent analysis of their collections revealed that it took 21/2 days for customer payments to arrive by mail. Once received, the company required 1'/2 days to process them, and three days after they were deposited they appeared in the bank balances. a) What is the delay (in days) that the company normally experiences in the collection of its accounts? b) If the opportunity cost of the company is 11%, is it advisable for the company to pay an annual fee of $ 16,500.00 in order to reduce the delay in the collection of accounts by 3 days? Explain your answer.
You have $141,000 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $43,000. a. Does this create a disbursement float or a collection float? b. What is your available balance? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What is your book balance? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
In June, Widgets, Inc. makes on account sales to Customs Motors of $800 and receives a payment of $500 from them. How would this affect the Accounts Receivable control account? O A. The AR total would be decreased by $300. O B. The AR total would be decreased by $500. O C. The AR total would be increased by $800. O D. The AR total would be increased by $300.
A company’s accounts receivable balance after posting net collections from customers is $150,000. Management has determined the following: $100,000 of the accounts that are 1 to 30 days past due are 2% uncollectible; and $50,000 of the accounts that are 31 to 60 days past due are 10% uncollectible. What is the net realizable value of the accounts receivable? $150,000 $148,000 $145,000 $143,000
3. Jumpdisk Co. writes checks averaging P15,000 a day, and it takes five days for these checks to clear. The firm also receives checks in the amount of P17,000 per day, but the firm loses three days while its receipts are being deposited and cleared. The firm's net float is? С. Р32,000 E. P126,000 А. Р16,000 В. Р24,000 D. P75,000
The following data pertains to Account Corp.'s: Account Corp.'s payment to suppliers (in number of days) Account Corp.'s collection from customers (in number of days) Mail Time 5 Mail Time 6 4 4 Processing Time Processing Time 1 Clearing Time Clearing Time 1 1. Account Corp.'s average daily payment is P2,000 meanwhile daily collection average P1,500. How much is the average daily disbursement float? 2. How much is the average daily collection float? How much is the net float? 3.
Assume a company has an accounts receivable balance from a customer totalling $41,000.Based on an analysis of the risk, timing and, expected cash flows, the company comes up with the following estimates at the respective reporting dates:31 December 20X7: The company expects to be able to collect $26,000 from the customer.31 March 20X8: The receivable has still not been collected, and the company expects they will only be able to collect $18,000.Required: Prepare the adjusting entry to record the lifetime expected credit losses for this customer on 31 December 20X7: Prepare the adjusting entry to record the lifetime expected credit losses for this customer on 31 March 20X8:
The bank statement for Tetra Company contained the following items: a bank service charge of $10; a credit memo for interest earned, $15; and a $50 NSF check from a customer. The company had outstanding checks of $100 and a deposit in transit of $300. Which of the following will be caused by recording the customer's NSF check? Multiple Choice Cash decreases. Stockholders' equity decreases. Accounts receivable increases and cash decreases. Accounts receivable increases.
Modos Company has deposited $4,180 in checks received from customers. It has written $1,530 in checks to its suppliers. The initial bank and book balance was $470. If $3,550 of its customers' checks have cleared, but only $430 of its own, calculate its float.
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?

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bartleby, a Learneo, Inc. business

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.)