The Timberline firm expects a total cash need of $12,500 over the next 3 months. They have a beginning cash balance of $1,500, and cash is replenished when it hits zero. The fixed cost of selling securities to replenish cash balances is $3.50. The interest rate on marketable securities is 8% per annum. There is a constant rate of cash disbursement and no cash receipts during the month.
-What is the firm's net float?
A) $-3,300
B) $-300
C) $300
D) $3,300
E) None of the above.
Correct Answer:
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Q42: The Mesa Bank is offering your company
Q42: Discuss the Check Clearing Act for the
Q43: During the month you receive 4 checks,one
Q43: What is the firm's disbursement float?
A)$-6,000
B)$-4,500
C)$4,500
D)$6,000
E)None of
Q45: Your firm has average daily receipts of
Q47: What is the firm's net float?
A)$-2,500
B)$-2,400
C)$2,400
D)$2,500
E)None of
Q48: The net float of a firm is
Q50: The Mesa Bank is offering your company
Q51: The Timberline firm expects a total cash
Q59: Your firm receives 40 checks per month.
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