1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
posledela
3 years ago
7

Each business day, on average, a firm writes checks totaling $17000 to pay its suppliers. The usual clearing time for the checks

is 4 days. Meanwhile, the firm is receiving payments from its customers each day, in the forms of checks, totaling $22000. The cash from the payments is available to the firm after two days. What is the firm’s disbursement float, collection float, and net float?
Business
1 answer:
BaLLatris [955]3 years ago
7 0

Answer:

The disbursement float is $ 68,000, collection float is -$44,000 and net float is $24,000.

Explanation:

DISBURSEMENT FLOAT -

Formula that can be used to calculate the disbursement float is  =

Amount of average monthly check written X Average number of days it

                                                                             takes to clear check

Where, amount of average monthly check = $17,000

and average number of days for it to be cleared = 4 days

Disbursement float = $17,000 x 4

                                = $68,000

COLLECTION FLOAT -

Formula that can be used to calculate the collection float is  =

Amount of average monthly check received X Average number of days it

                                                                             takes to clear check

Where, amount of average monthly check =-$22,000

and average number of days for it to be cleared = 2 days

Collection float = -$22,000 x 2

                         = -$44,000

NET FLOAT -

Formula that can be used to calculate the NET float is  =

DISBURSEMENT FLOAT - COLLECTION FLOAT

= $68,000 - $44,000

= $24,000

You might be interested in
Which of the following statements is not true for T accounts?
Sever21 [200]

Answer: The statement "d. The excess of the credits of an asset account over the debits is the balance of the account.". is <u>NOT TRUE.</u>

Explanation: The statement "d." is not true because according to the basic equity equation (ASSETS = LIABILITIES + EQUITY).

The excess of the debits of an asset account over the credits is the balance of the account and the excess of the credits of an owner's equity account or a liability account over the debits is the balance of the account.

5 0
3 years ago
2. Zach filed his individual federal tax return for the year ending December 31, 2018 on April 15, 2019 and he owed $25,000. As
jeyben [28]

Answer:

$26,125

Explanation:

[($25,000 x 0.005) x 9 + $25,000]

=$26,125

Zach owe $26,125 as of December 31, 2019 because he did not fail to file - he failed to pay. Hence he owes the 0.5% per month or part of a month failure to pay penalty plus the already outstanding tax amount of $25,000 that he owed.

4 0
3 years ago
If you sell only one or just a few items your business is
GarryVolchara [31]

Answer:

selling half

Explanation:

because your not selling everything so not all

5 0
3 years ago
What section of your resume includes your GPA?​
Ipatiy [6.2K]
What do you mean do you have a better example..? But usually some jobs don’t ask
4 0
2 years ago
Conducting a double-blind study is easier when assessing the effectiveness of _____ compared with _____.
Vilka [71]
Is any answers option 
3 0
3 years ago
Other questions:
  • At the beginning of the year, Kullerud Manufacturing had a credit balance in its allowance for doubtful accounts of $10,670, and
    5·1 answer
  • Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will ______. T
    9·1 answer
  • Which of the following will increase the supply of laptop computers? Choose one or more: A. The price of laptop computers rises.
    6·1 answer
  • What is the tax on an annual salary of 66000 dollars​
    13·1 answer
  • Devon Company has collected the following data for one of its​ products: Direct materials standard​ (4 pounds​ @ $1/lb.) ​$4 per
    7·1 answer
  • A human resources department could assume the staffing function of management. <br> True <br> False
    13·1 answer
  • What kind of applications can improve the quality of your blog
    12·1 answer
  • Haven Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $600,000 and cre
    10·1 answer
  • Networking is a key benefit to a college education.which of the following is not an example of a networking benefit
    9·1 answer
  • प्रबंध की विशेषताएं क्या है?​
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!