1) XYZ Corporation prepares six checks a day for the average amount of $2,400 each. These checks usually clear bank 5 days after they are written. Additionally, firm generally receives and deposits checks amounting to $18,700 each day. All deposits are available in 1 day.
a) Determine the firm's collection float?
b) Determine the firm's disbursement float?
c) Determine the firm's net float?
2) XYZ Corporation prepares twenty checks a day for the average amount of $990 each. These checks usually clear the bank in four days. Additionally, firm usually receives the average of $120,000 a day in checks which are deposited immediately. Deposited funds are available in 1.5 days. What is the firm's net float?
3) ABC Corporation bought $10,000 worth of inventory. Terms of sale were 2/10, net 30. Determine the:
a) Periodic rate?
c) Effective rate?