EBK CORPORATE FINANCE
11th Edition
ISBN: 8220102798878
Author: Ross
Publisher: YUZU
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Chapter 27, Problem 2QP
Calculating Net Float Each business day, on average, a company writes checks totaling $14,400 to pay its suppliers. The usual clearing time for the cheeks is four days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $25,300. 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.
b. How would your answer to part (a) change if the collected funds were available in one day instead of two?
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Each business day, on average, a company writes check totaling $38,500 to pay its suppliers. The usual clearing time for the checks is five days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $49,500. The cash from the payments is available to the firm after three days.
a. Calculate the company's disbursement float, collection float, and net float.
Disbursement float _____________
Collection float ________
Net float ___________
b. Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in one day instead of three.
Disbursement float _________
Collection float _____________
Net float _____________
Each business day, on average, a company writes checks totaling $36,500 to pay its suppliers. The usual clearing time for the checks is five days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $47,500. The cash from the payments is available to the firm after three 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 and round your answers to the nearest whole number, e.g., 32.)
b.
Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in two days instead of three. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
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.
Chapter 27 Solutions
EBK CORPORATE FINANCE
Ch. 27 - Cash Management Is it possible for a firm to have...Ch. 27 - Cash Management What options are available to a...Ch. 27 - Prob. 3CQCh. 27 - Cash Management versus Liquidity Management What...Ch. 27 - Prob. 5CQCh. 27 - Collection and Disbursement Floats Which would a...Ch. 27 - Prob. 7CQCh. 27 - Short-Term Investments For each of the short-term...Ch. 27 - Prob. 9CQCh. 27 - Prob. 10CQ
Ch. 27 - Prob. 11CQCh. 27 - Prob. 12CQCh. 27 - Calculating Float In a typical month, the Warren...Ch. 27 - Calculating Net Float Each business day, on...Ch. 27 - Costs of Float Purple Feet Wine, Inc., receives an...Ch. 27 - Float and Weighted Average Delay Your neighbor...Ch. 27 - Prob. 5QPCh. 27 - Using Weighted Average Delay A mail-order firm...Ch. 27 - Prob. 7QPCh. 27 - Lockboxes and Collections It takes Cookie Cutter...Ch. 27 - Value of Delay No More Pencils, Inc., disburses...Ch. 27 - NPV and Reducing Float No More Books Corporation...Ch. 27 - Prob. 11QPCh. 27 - Prob. 12QPCh. 27 - Prob. 1MCCh. 27 - Prob. 2MCCh. 27 - What cost of ACH transfers would make the company...
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