Q2. Refer to the Image!!!1. How much is the average daily disbursement float? 2. How much is the average daily collection float? 3. How much is the net float? National Co.'s average daily payment is P10,000meanwhile daily collection average P5,000.The following data pertains to National Co.'s:National Co.'s payment to suppliersNational Co.'s collection from customers(in number of days)(in number of days)Mail Time5Mail Time7Processing Time3Processing Time23Clearing TimeClearing Time3

Answered: to National Co.'s: yment to suppliers…

Business

Accounting

to National Co.'s: yment to suppliers er of days) 5 National Co.'s collection from customers (in number of days) 7

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: CONT DE ON NEXT PAG QUESTION 4 Nano Ltd. manufactures three different types of electric kits for…

A: As per the norms of Bartleby, in case of Multiple sub parts been asked, expert can answer to only…

Q: Inc. has a shoes and a shirts division. The company reported the following segmented income…

A: Total net operating income with Shirts = $0 Total net operating income without Shirts =…

Q: 2. Rose Company uses the Percentage of Accounts Receivable method to estimate the allowance for…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: National Co.'s average daily payment is P10,000 meanwhile daily collection average P5,000. The…

A: a) Calculation of average daily disbursement float :- Average daily disbursement float = 10,000 x…

Q: Financial Statements from the End-of-Period Spreadsheet Bamboo Consulting is a consulting firm…

A: >Financial Statements are prepared at the end of accounting period, and these include: #1:…

Q: A laboratory equipment costing ₱137,000 has a projected salvage value of ₱11,000 after 6 years of…

A: solution given cost of asset (P) =137,000 salvage value (L) =11000 n…

Q: Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month…

A: A cash budget is prepared to estimate the total cash received and total cash disbursement. It is…

Q: On May 1, 2022, AA and BB formed a partnership with each contributing the following assets: Partner…

A: The partnership is an agreement between two or more partners where partners are agreed to work…

Q: National Co.’s evaluation of its cash outlay required indicates that it needs 500,000 for the year.…

A: when determining the optimal level of cash it is necessary to considered the opportunity as cost…

Q: 2018 852,000 2017 912,000 Stal revenue expenses. osts of goods sold 402,000 $ 408,000 264,000 10,500…

A: The horizontal analysis is performed to compare the financial results of two different years.

Q: Based on the Module 1 content, briefly explain what the theory of comparative advantage would…

A: Opportunity cost means the number of units of a product forgone in order to produce a unit of…

Q: a. P15,000 b. P62,000 C. P77,000 d. P80,000 70. How much should be recognized as R&D expense? a.…

Q: Jhonson Co. provided the following information regarding an automobile; Acquisition date April 1,…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub-parts for…

Q: A and B have capital balances of P150,000 and P180,000, respectively. C is to invest P60,000 for 15%…

A: On admission of a person in a partnership firm, the total investment by the newly added partner is…

Q: On Jan. 1, 2021, Bee Co. settled a P 1,000,000 loan by issuing to the lender 10,000 shares with par…

A: The loan is the amount in which one party lends money to another party. The money is lent for a…

Q: 5. A minimum wage earner in Metro Manila is paid P537.00 for an 8-hour workday. If he works for 22…

A: Wages means the amount paid to worker for producing the goods. Take home wages means the amount…

Q: Diversity Ltd. produces and sells a product called Star. The company is currently selling 9,560…

A: Under cost-profit volume analysis, the break-even point of a business is computed. Any sales above…

Q: Hassel has estimated the first batch of product will take 80 hours to complete. A 90% learning curve…

A: Solution Concept Learning curve effect is the effect of learning upon the subsequent production It…

Q: What do you mean by Working capital? 2. What are the types of working capital?

A: Working capital is the amount of capital which is used by the business in its routine operations.

Q: The cash budget for the first three quarters of the company is given below (000 omitted). The…

A: Answer - Working Note : i. Borrowing for 1st Quarter - = Cash Ending Balance - Deficiency in…

Q: The following selected accounts and their current balances appear in the ledger of Kanpur Co. for…

A: Net income is the excess of revenue over expenses during the specified period.

Q: The following units of an item were available for sale during the year: Beginning inventory 35 units…

A: FIFO: FIFO stands for First-In, First-Out. In this method inventory purchased first will be sell…

Q: The units-of-production method of depreciation charges a varying amount of depreciation expense for…

A: Depreciation represents the reduction in the value of an asset over a useful life of the asset. It…

Q: Assume the partnership income-sharing agreement calls for income to be divided with a salary of…

Q: John and Sally Claussen are considering the purchase of a hardware store from John Duggan. The…

A: Present value of cash flows from the store for years 1 to 5=Annual cash flows×PVIFA(7%, 5 years)…

Q: What amount of current tax expense should be reported? a. P 565,000 b. P 678,000 c. P 505,000 d. P…

A: Tax refers to the amount charged by the government on individuals, partnership firms, HUF’s or any…

Q: Hermione Ltd. produces magical wands. budgeted production equals magical wands and the budgeted…

A: Under absorption costing, costs are allocated to all the units produced. Thus, each unit will incur…

Q: McDo Co. reported the following amounts in the shareholders’ equity section of its December 31,…

Q: A first-year ZU business students states: "There is no use in calculating financial ratios, because…

A: Before proving the validation of the given statement, it is essential to understand that what is the…

Q: For the year ended December 31, 2021, a corporation had cash flow provided by operating activities…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: San Carlos Corporation, a U.S. multinational, had pretax U.S. source income and foreign source…

A: If the foreign tax credit is taken then the credit is reduced from the total tax liability. If the…

Q: FD=P2,122.00 and N = P17,517.29, what is the value of E? Note: E Total Earnings D = Deduction N =…

Q: The cash budget for the first three quarters of the a company is given below (000 omitted). The…

A: Quarter Total 1 2 3 Cash Balance, beginning $9 $5 $5 $9 Add - Collections $88 $128…

Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary shares,…

A: Other comprehensive income for 2019 = fair value of 2019 - fair value of 2018 It shall be…

Q: Noora Company manufactures quality hair care product. The ingredients are combined in the mixing…

A: Cost reconciliation is a reconciliation between costs to be accounted for (that is beginning…

Q: Davis Company manufacturers desks. The beginning balance of Raw Material Inventory was $4,500; raw…

A: Raw material: Raw material used means raw material consumed as an input in the process of…

Q: Intangible Asset & Impairment PT Cabo is operating in the cosmetics industry. A company-owned…

A: a. First of all we have to calculate impairment loss for the year 2021. Impairment loss (2021) =…

Q: Before the year began, the following static budget was developed for the estimated sales of 100,000.…

A: A flexible budget is prepared on the basis of the budgeted rate and on the basis of different…

Q: Parent corporation purchased 25% of the outstanding common shares of Subsidiary Limited for…

A: Journal entry is the act of keeping or making records of any transaction either economic or non…

Q: Noora Company manufactures quality hair care product. The ingredients are combined in the mixing…

A: Solution: Noora Company Production Cost report - Mixing Department Computation of Equivalent…

Q: The main automobile manufacturers have plans to spend millions of dollars on the research and…

A: Answer:- Automobile meaning:- A automobile, often known as a motorcar or car, is a four-wheeled…

Q: PROBLEM 2. On January 1, 2018, Inside Out Corporation had 30,000 ordinary shares of UP Company…

A: Number of shares purchased = 30000 bonus shares = 30000 x 20%= 6000 shares Number of shares sold =…

Q: A piece of equipment costs ₱351,000 including shipping, installation and taxes. The supplier assures…

A: Sum - of-the -Years Digit method: The sum of the year's digit depreciation is one method for…

Q: What are some advantages of using IT and audit software when conducting an audit?

A: The audit can be defined as the independent examination of internal control, accounting records, and…

Q: Inc. Balance Sheet March 31 Assets Cash $ 83,000 Accounts receivable Inventory 126,000 69,750…

A: Purchases = Cost of goods sold + Ending inventory - Beginning inventory

Q: On january 1, 2017, Nolte Company leased a machine from Durdil, Inc. for a five- year period. Equal…

A: At inception of lease, lease liability is recorded at present value of minimum lease payments. Hence…

Q: Based on the aforementioned data and the result of you audit, determine the following a. The…

Q: A laboratory equipment costing ₱146,000 has a projected salvage value of ₱15,000 after 6 years of…

A: Depreciation is the amount of charge against the cost of a fixed asset to meet the obsolescence…

Q: company manufactures 38,000 units of part T-25 each year. The company's cost per unit for part T-25…

A: Total cost of manufacturing = 38,000 units x $25.00 = $950,000 Total cost of buying = (38,000 x…

Q: The present value of an ordinary annuity of $350 each year for five years, assuming an interest rate…

A: The present value of a fixed amount that will be received or paid, over a specified time period, is…

Question

Q2. Refer to the Image!!! 1. How much is the average daily disbursement float? 2. How much is the average daily collection float? 3. How much is the net float?

National Co.'s average daily payment is P10,000
meanwhile daily collection average P5,000.
The following data pertains to National Co.'s:
National Co.'s payment to suppliers
National Co.'s collection from customers
(in number of days)
(in number of days)
Mail Time
5
Mail Time
7
Processing Time
3
Processing Time
2
3
Clearing Time
Clearing Time
3

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Compute for the Day Sales Outstanding of Company X and Y. Compare each other. Use 360 days. Company X Company Y Accounts Receivables P452,100 P233,200 Annual Sales P3,205,100 P1,956,200
On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May. total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13.000. What was the amount of credit sales during May? O $52,000. O $32,000. O $47,000. $57,000. O 55,000.
A wants you to calculate its average days in accounts receivable for theyear. Its beginning and ending balances for Accounts Receivable were $11,500 and$17,250, including GST, respectively. The beginning and ending balances for theAllowance account were $350 and $500, respectively. All sales are on credit andamounted to $135,000, while the ending balance for Sales Returns & Allowances was$10,000. What is the average days in accounts receivable?a. 35.26.b. 41.98.c. 40.73d. 36.50.
Teams MSFT Corporation has the following information: Inventory conversion period 79.02 days Receivables collection period 35.8 days Payables deferral period 9.6 days Can you determine the length of time (days) for them to cycle cash in the company? (represent your numeric result in two decimal places)
Nicole Company has an average collection period of 52 days and accounts receivables of P250,000. What are Nicole's annual sales? O P1,543,823 O P1,754,808 P250,000 O P2,234,756 ООО О
The following information relates to ReDo Corporation: $28,184,000 $316,199,000 $64,115,000 What ReDo's receivables collection period (DSO)? In your computations, assume there are 360 days in a year. 42.50 days O 72.99 days 32.09days Accounts receivable Total credit sales Accounts payable O 11.22days
Zips Corp reports the following: Net Credit Sales 100,000 A/R Jan 1 10,000 ADA Jan 1 1,000 A/R Dec 31 15,000 ADA Dec 31 2,000 The average number of days until an account is collected is 36.5 O46 O40 O 30
In June, Widgets, Inc. makes on account sales to Customs Motors of $800 and receives a payment of $500 from them. How would this affect the Accounts Receivable control account? O A. The AR total would be decreased by $300. O B. The AR total would be decreased by $500. O C. The AR total would be increased by $800. O D. The AR total would be increased by $300.
Determine credit sales from the following information: Accounts Receivables Dec 31 2002 $4000, and on Dec. 31 2003 $6000 Cheques received from customers $32000.
Oman company had $180,000 sales on credit last year. The accounts receivable balance was $14,000 What is the average collection period? Select one: O 20.2 days. O 36.5 days. O 56.78 days O 28.3 days ENG 07:59 3238page=11# 38°C Sunny INTL 25/07/2021
The following data was generated as of December 31Accounts receivable, Jan 1 550,000.00Accounts receivable collected 875,000.00Cash Sales 350,000.00Inventory, January 1 450,000.00Inventory, December 31 275,000.00Purchases 950,000.00Gross Margin on Sales 375,000.00 a.) How much is the total sales?b.) How much is the cost of sales?c.) How much is the ending Receivable as of Dec 31?d.) How is the credit sales?
The following data pertains to the customers' accounts of ABC Corp at June 30, 20X1:Accounts receivable, June 1, P80,000Accounts receivable, June 30, P97,000Cash collections during the month (net of 2% cash discount), P107,800Sales returns , P10,000Customer's account written off, P17,000How much is the credit sales for the month? a. 134,800 b. 137,000 c. 154,000 d. 151,800