Question 11.8: A company has a collection float of 2000 € outstanding for 3...

Analytical Corporate Finance

A company has a collection float of 2000 € outstanding for 3 days and will have a float of 1500 € outstanding for the following 5 days. The average daily collection float is then

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Question: 11.6

Consider the same company as in Example 11.5, selling products and being paid with a check of 50,000 €. The company book balance will immediately increase by the amount of 75,000 €, while the bank account will not. If the company starts with a balance of 200,000 € in both the book and the bank, the ...

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Question: 11.11

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Question: 11.10

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Question: 11.7

Consider the same company as in Examples 11.5 and 11.6. Given the collection float and the disbursement float calculated before, we can calculate the net float as: ...

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Question: 11.9

A company has a disbursement float of 2500 € outstanding for 3 days and will have a float of 2000 € outstanding for the following 4 days. The average daily disbursement float is then ...

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Question: 11.5

Consider a company buying inventory and paying with a check of 50,000 €. The company book balance will be immediately reduced by the amount of 50,000 €, while the bank account will not. If the company starts with a balance of 200,000 € in both the book and the bank, the float scheme looks like: ...

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Question: 11.4

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Question: 11.3

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Question: 11.2

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Question: 11.1

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