In a typical month, the Monk Corporation receives 80 checks totaling $131,000. These are delayed four days on average. What is the average daily float? Assume 30 days in a month.
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In a typical month, the Monk Corporation receives 80 checks totaling $131,000. These are delayed four days on average. What is the average daily float? Assume 30 days in a month.
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- Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?During a normal month, Jank's receives a total of nine checks with a total value of $237,400. On average, it takes 1 day from the date of deposit for the funds from these checks to be available to the firm. Assume each month has 30 days. What is the average daily float?
- A company receives three check per month. Each is for $25,000. The number of days float on the first is 9 days. On the second, 6 days. On the third, 3 days. What is the weighted average delay?On an average day, Town Center Hardware receives $2,420 in checks from customers. These checks clear the bank in an average of 2.1 days. The applicable daily interest rate is 0.025 percent. What is the maximum amount this store should pay to completely eliminate its collection float? Assume each month has 30 days.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.
- On an average day, GDF Corp. receives $7,218 in checks from customers. These checks clear the bank in an average of 1.6 days. The applicable daily interest rate is .028 percent. What is the present value of eliminating the float? Assume each month has 30 days.The Professional Service Company expects 80% of sales for cash and 20% on credit. The company collects 80% of its credit sales in the month following sale, 15% in the second month following sale, and 5% are not collected (that is, they are "bad debts"). Expected sales for June, July, and August are $60,000, $66,000, and $56,000, respectively. What are the company's expected total cash receipts in August?Baxley Brothers has a DSO of 20 days, and its annual sales are $10,585,000. What is its accounts receivable balance? Assume that it uses a 365-day year. Round your answer to the nearest dollar
- The Amherst Corporation has a 45-day accounts receivable period. The estimated quarterly sales for this year are $28,000, $41,000, $35,500, and $32,500, respectively, for the next four quarters. What is the accounts receivable balance at the beginning of the quarter 2? Each quarter has 90 days. Multiple Choice $36,750 $34,500 $20,500 $14,000 $28,000Medwig Corporation has a DSO of 20 days. The company averages $3,500 in sales each day (all customers take credit). What is the company's average accounts receivable? Assume a 365-day year. Round your answer to the nearest dollar. $A company has expected sales for January through April of $9,800, 59, 500, $13, 800, and $9,500, respectively. Assume each month has 30 days and the accounts receivable period is 36 days. How much does the company expect to collect in the month of May?