Corporate Finance (The Mcgraw-hill/Irwin Series in Finance  Insurance  and Real Estate)
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Chapter 27, Problem 1QP

Calculating Float In a typical month, the Warren Corporation receives 140 checks totaling $113,500. These are delayed four days on average. What is the average daily float?

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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?
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.
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