Ch_19_HW_A_Solutions

Ch_19_HW_A_Solutions - Ch 19 HW A Solutions 1 Average daily...

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Ch 19 HW A Solutions 1 Ch 19 HW A Solutions 1. Average daily float = (1,200 * 8 ) / 30 = 320.00 Ch# Delay (days) Ck Amount Float 1 8 1,200 9,600 2 0 0 0 3 0 0 0 4 0 0 0 5 0 0 0 8 1,200 9,600 1,200 40.00 9,600 320.00 8.00 Float calculation for one month (30 days) Total Receipts Average Daily Receipts Total Float Average Daily Float Weighted Average Delay 2. Disbursement float = 600 * 3 = 1,800.00 3. Collection float = 700 * - 1 = -700.00 4. Net Float = Disbursement float + Collection float = 1,800.00 700.00 = 1,100.00 5. If Collection was in 2 days then, Collection float = 700 * - 2 = -1,400.00 Net Float = Disbursement float + Collection float = 1,800.00 1,400.00 = 400.00 6. Total Float = ( 12,000 * 7 ) + ( 2,000 * 3 ) = 84,000 + 6,000 = 90,000 7. Average daily float = 90,000 / 30 = 3,000.00 8. Average daily receipts = ( 12,000 + 2,000 ) / 30 = 14,000 / 30 = 466.67 9. Total receipts = 12,000 + 2,000 = 14,000 Weighted Average Delay = ( 12,000 / 14,000 * 7 ) + ( 2,000 / 14,000 * 3 ) = 6 + 0.428571429 = 6.428571429 = 6.43
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This note was uploaded on 11/29/2011 for the course FINANCE 332 taught by Professor Linney during the Fall '11 term at Guilford Tech.

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Ch_19_HW_A_Solutions - Ch 19 HW A Solutions 1 Average daily...

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