Shannara Manufacturing writes 30 checks a day for an average amount of $497 each that generally clear 3 days after they are written. In addition, the firm generally receives 38 checks each day with an average amount of $ 562 each that are available after 2.5 days. Is this a collection or disbursement float? What is the amount of the float?

Shannara Manufacturing writes 30 checks a day for an average amount of $497 each that generally clear 3 days after they are written. In addition, the firm generally receives 38 checks each day with an average amount of $ 562 each that are available after 2.5 days. Is this a collection or disbursement float? What is the amount of the float?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Madison Corner writes 29 checks a day for an average amount of $493 each. These checks generally clear the bank 2.75 days after they are written. In addition, the firm generally receives 66 checks with an average amount of $556 each. Deposited amounts are available after an average of 2.25 days. What is the amount of the firm's collection float? Multiple Choice $82,566 $43,249 $39,317 $36,696 $14,297
On a typical day, a company writes 85 checks worth a total of $10,800 that clear in 3.75 days. The company also collects 98 checks worth a total of $14,830 that clear in 3.25 days. Is this a collection or disbursement float? What is the float value?
Next, consider the case of Washburn Flooring Company: The management at Washburn Flooring has determined that it takes an average of 6 days for checks the company writes to clear its bank account. Cash receipts from customers are reflected in Washburn's bank account an average of 2 days after the checks are received. On an average day, Washburn writes checks that total $40,000, and it receives checks from customers that total $50,000. Compute the collection float, the disbursement float, and the net float in dollars in the following table. (Note: By definition, collection float is always considered negative, and disbursement float is always positive. Both should be shown as positive numbers here. The net float, however, should be shown as positive if it is favorable and as negative if it is unfavorable.) Washburn Flooring Company Float Calculations Collection float Disbursement float Net float Given this information, you can deduce that on an average day, Washburn Flooring's bank…
In the month of April, Mazaya Company Inc. wrote checks in the amount of R.O.18,500. In May, checks in the amount of R.O.25.316 were written. In April, R.O.16,936 of these checks were presented to the bank for payment, and R.O.21,676 were presented in May. What is the amount of outstanding checks at the end of May? Select one: O a. R.O.1,564 O b.R.O.5,204 O c R.O.7,19o O d. R.O.3,64o If a gain of RO.20,000 is made in relation to selling (for cash) office equipment having a book value of R.O 80,00o, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
Tokyo Corporation receives checks that amount to P400,000 each day, whereas the amount of checks the company writes each day averages P350,000. It normally takes three days for incoming checks to clear through the banking system, and outgoing checks generally clear in four days. What is the firm’s net float? No decimal point. Use comma.
In the month of March, Mazaya Company Inc wrote checks in the amount of R.O 45.620. In April, checks in the amount of RO 63.290 were written. In March, R.O.43.240 of these checks were presented to the bank for payment, and R.054415 in April. Whatis the amount of outstanding checks at the end of March? Select one O a. RO3.75o O BRO2.380 O C RO3,910
You have $141,000 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $43,000. a. Does this create a disbursement float or a collection float? b. What is your available balance? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What is your book balance? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
In the month of May, Fredricksburg Company Inc. wrote checks in the amountof $64,750. In June, checks in the amount of $88,606 were written. In May,$59,276 of these checks were presented to the bank for payment, and $76,181in June. What is the amount of outstanding checks at the end of June?a. $12,425b. $5,474c. $17,899d. $24,850
7. Your checkbook shows you have a $10,000 balance in your account. You write checks totaling $4,000 and make a deposit of $6,000. What is your disbursement float? 8. Your checkbook shows you have $10,000 balance in your account. You write checks totaling $4,000 and make a deposit of $6000 What is your collection float?
The following data maybe few of your considerations to determine the beginning balance of the outstanding checks: total checks issued by the company 1,900,000; total bank debits P1,790,500; bank service charge for the current month P2,500; NSF check returned by the bank for the current month P40,000; Outstanding check at the end of the period is P222,000. Compute the outstanding check beginning of the period.
Lowell Bank reported the following checking account fees: $2 to see a real-live teller, $20 to process a bounced check, and $1 to $3 if you need an original check to prove you paid a bill or made a charitable contribution. This past month you had to transact business through a teller six times-a total $12 cost to you. Your bank statement shows a $305.33 balance; your checkbook shows a $1,009.76 balance. You received $1.10 in interest. An $801.15 deposit was not recorded on your statement. The following checks were outstanding: No. 413, $28.30; No. 414, $18.60; and No. 418, $60.72. Prepare your bank reconciliation. (Input all amounts as positive values. Round your answers to 2 decimal places.) BANK RECONCILIATION Checkbook balance Bank balance Add: Add: Subtotal Subtotal Deduct: Deduct: Reconciled balance Reconciled balance Rext > < Prev 1 of 15
Lowell Bank reported the following checking account fees: $2 to see a real-live teller, $20 to process a bounced check, and $1 to $3 if you need an original check to prove you paid a bill or made a charitable contribution. This past month you had to transact business through a tellet six times-a total $12 cost to you. Your bank statement shows a $305,33 balance your checkbook shows a $1,009.76 balance. You received $1.10 in interest. An $80115 deposit was not recorded on your statement. The following checks were outstanding: No. 413. $28.30, No. 414, $18.60, and No. 418, $60.72. Prepare your bank reconciliation (Input all amounts as positive values. Round your answers to 2 decimal places) Checkbook balance Add: Interest Subtotal Deduct Teller fee Reconciled balance Y BANK RECONCILIATION $ 1,009 76 Bank balance Add: 1.10 $1,010.86 12.00 $ 998 58 Deposit in transit Subtotal Deduct Outstanding checks (total) Reconciled balance - ** $ 74 $ 305.33 801.15 1,106.48 107,62 998.86

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS