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1. Modos Company has deposited $4,170 in checks received from customers. It has written $1,600 in checks to its suppliers. The initial bank and book balance was $460. If $3,400 of its customers checks have cleared but only $450 of its own, calculate its float.
$480
$530
$1,220
$380
2. Price Corp. is considering selling to a group of new customers and creating new annual sales of $100,000. 2% will be uncollectible. The collection cost on these accounts is 5% of new sales, the cost of producing and selling is 84% of sales and the firm is in the 25% tax bracket. What is the profit on new sales?
$6,750
$29,966
$16,750
$84,000
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