Average trade collections and disbursement are P72,000,000 and P57,600,000 per year. It takes a customer check an average of three days to clear the bank while it takes a company check four days. If the bank provides a 2% return on the bank balance, how much is the net benefit or (cost) of the float?

Average trade collections and disbursement are P72,000,000 and P57,600,000 per year. It takes a customer check an average of three days to clear the bank while it takes a company check four days. If the bank provides a 2% return on the bank balance, how much is the net benefit or (cost) of the float?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 4PROB

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