1. Jumpdisk Co. writes checks averaging P15,000 a day, and it takes five days for these checks to clear. The firm also receives checks in the amount of P17,000 per day, but the firm loses three days while its receipts are being deposited and cleared. The firm’s net float is? 2. AXE Co. expects to have sales of P30,000 in January, P33,000 in February, and P38,000 in March. If 20 % of sales are for cash, 40 % are credit sales paid in the month following the sale, and 40 % are credit sales paid 2 months following the sale, what are the cash receipts from sales in March?

1. Jumpdisk Co. writes checks averaging P15,000 a day, and it takes five days for these checks to clear. The firm also receives checks in the amount of P17,000 per day, but the firm loses three days while its receipts are being deposited and cleared. The firm’s net float is? 2. AXE Co. expects to have sales of P30,000 in January, P33,000 in February, and P38,000 in March. If 20 % of sales are for cash, 40 % are credit sales paid in the month following the sale, and 40 % are credit sales paid 2 months following the sale, what are the cash receipts from sales in March?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 4PROB

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Average trade collections and disbursement are P72,000,000 and P57,600,000 per year. It takes a customer check an average of three days to clear the bank while it takes a company check four days. If the bank provides a 2% return on the bank balance, how much is the net benefit or (cost) of the float?
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