Calculate the companys disbursement float collection float

Reference no: EM13483712 , Length: 10

Calculating net float each business day, on average. A company writes checks totaling $30,000 to pay its suppliers. The clearing time for the cheks is four days.meanwhile, the company is receiving payments each day, in the from of checks. Totaling $50,000. The cash from the payment is available to the firm after two days.

a. Calculate the companys disbursement float, collection float and net float.

b. How would your answer to part (a) change if collected funds were available in one day instead of two?

Reference no: EM13483712

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