Question 11.5: Consider a company buying inventory and paying with a check ...

Analytical Corporate Finance

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: 11.6

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Question: 11.11

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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

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Question: 11.8

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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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