Answer:
A.Collection Float ($44,000)
Disbursements Float $68,000
Net Float $24,000
B.Collection Float ($44,000)
Disbursement Float $68,000
Net Float $24,000
Explanation:
A. Calculation the company's disbursement float, collection float, and net float
Per Day Clearing Days Float
Collection Float ($22,000) ×2days = ($44,000)
Disbursements Float $17,000 × 4days = $68,000
Net Float $24,000
($68,000-$44,000)
B. Calculation for the company's disbursement float, collection float, and net float if the collected funds were available in two days instead of four
Per Day Clearing Days Float
Collection Float ($22,000) ×2 days =($44,000)
Disbursement Float $41,500 ×4days= $68,000
Net Float $24,000
($68,000-$44,000)
Hence,
A.Collection Float ($44,000)
Disbursements Float $68,000
Net Float $24,000
B.Collection Float ($44,000)
Disbursement Float $68,000
Net Float $24,000
