Ask Experts Questions for FREE Help !
    CarlyS's Avatar
    CarlyS Posts: 2, Reputation: 1
    New Member

    May 24, 2007, 07:30 PM
    Disbursement Float
    Average daily remittances are $5 million, and "extended disbursement float" adds 3 days to the disbursement schedule, how much should the firm be willing to pay for a cash management system if the firm earns 10% on excess funds.
    A) $500,000
    B) $1,500,000
    C) $1,000,000
    D) $0

    Is the answer A.. Not sure, but I'm thinking that if there is 5 million, ten percent in excess funds then that would be 500,000 of extrea funds available for cash management. Thanks!


Check out some similar questions!

Cash disbursement [ 1 Answers ]

Dokken & Dietrich’s Donut Company pays for 25% of its inventory purchases in the Month of the purchase and the remainder in the following month. The company’s Inventory purchases totaled $840,000 in October, $920,000 in November, and $600,000 In December. The company also paid for new...

401k disbursement and downpayment [ 3 Answers ]

In 2005, I took a withdrawal from my 401K, which I used as a downpayment on my first and primary place of residence. I was paying it back, when I changed companies in 2006. The old company has reported it to IRS as a taxable income. Now I face additional penalties and taxes. How do I offset my...

A/c float switch wiring connections [ 1 Answers ]

While working in my attic, I accidentally disconnected one of the eletrical leads from the float switch in my condenser drip pan. Both leads are small gauge, plain black insulate wiring. One lead is still connected to the wiring panel on the side of the hvac unit. The other lead that I kicked...

Can't find float switch for ac unit [ 1 Answers ]

I need a float switch for emergency turn off if the water(the water is ccndensation) backs up in the ac. I don't need a pump. I have a line running from the ac going into the sewage line for drainage but house inspector told me to get an emgergency turn off switch- he called it a float switch. I...

View more questions Search

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.