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Question - Each business day, on average, a company writes checks totaling $32,500 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 $43,500. 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.
b. Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in two days instead of three.
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