(Calculating Net Float) Each business day, on average, a company writes checks totaling $12,000
to pay its suppliers. The usual clearing time for the checks is four
days. Meanwhile, the company is receiving payments from its customer
each day, in the form of checks, totaling $23,000. 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 you answer to part (a) change if the collected funds were available in one day instead of two?
Click here for the solution: (Calculating Net Float) Each business day, on average, a company writes checks totaling $12,000 to pay its suppliers
