Problem 16.18 – Come and Go Bank
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition
Given the discount interest loan information and the compensating balance… find the effective annual interest rate.
Given the discount interest loan information and the compensating balance… find the effective annual interest rate.
You are told the amount you have on deposit and then you either write a check or deposit a check. Determine the type of float, the available balance, and the book balance for the firm.
You are given the amount you have on deposit, then you write a check and also deposit a check. Determine the disbursement float, collection float, and net float.
Given the amount of checks received, the total amount of the checks, the amount of days delayed, and the days in the month… find out the average daily float.
Given the total of the checks, clearing time, received payments, and clearing time for payments… figure out the disbursement float, collection float, and net float for both a and b.
Calculate the average investment in accounts receivable based on credit sales and the average collection period.
Determine the average accounts receivable.
Given the terms and net… find the effective rate for the different scenarios.
Given the average collection period and daily investment in receivables… find the receivable turnover and annual credit sales.
Given the amount of switches used per week, carrying cost, and the fixed order cost… find the current carrying cost, current order cost, and current economic order quantity.