{"id":25518,"date":"2021-01-14T10:59:46","date_gmt":"2021-01-14T10:59:46","guid":{"rendered":"http:\/\/onlineclassesguru.com\/?p=25518"},"modified":"2021-01-14T10:59:46","modified_gmt":"2021-01-14T10:59:46","slug":"each-day-the-clinic-typically-receives-1000-in-checks-that-take-three-days-to-clear-what-is-the-clinics-average-net-float","status":"publish","type":"post","link":"https:\/\/onlineclassesguru.com\/index.php\/2021\/01\/14\/each-day-the-clinic-typically-receives-1000-in-checks-that-take-three-days-to-clear-what-is-the-clinics-average-net-float\/","title":{"rendered":"Each day the clinic typically receives $1,000 in checks that take three days to clear. What is the clinics average net float?"},"content":{"rendered":"<style type=\"text\/css\"><\/style><h4>Each day the clinic typically receives $1,000 in checks that take three days to clear. What is<br \/>\nthe clinics average net float?<\/h4>\n<p>HSA 525 WEEK 9 HOMEWORK<\/p>\n<p>Homework<br \/>\n16.1 \u2013 On a typical day, Park Place Clinic writes $1,000 in checks. It generally takes four days for those<br \/>\nchecks to clear. Each day the clinic typically receives $1,000 in checks that take three days to clear. What is<br \/>\nthe clinics average net float?<br \/>\n16.2 \u2013 Drugs \u2018R Us operates a mail order pharmaceutical business on the West Coast. The firm receives an<br \/>\naverage of $325,000 in payments per day. On average, it takes four days for the firm to receive payment,<br \/>\nfrom the time customers mail their checks to the time the firm receives and processes them. A lockbox<br \/>\nsystem that consists of 10 local depository banks and a concentration bank in San Francisco would cost<br \/>\n$6,500 per month. Under this system, customers\u2019 checks would be received at the lockbox locations one<br \/>\nday after they are mailed, and the daily total would be wired to the concentration bank at a cost of $9.75<br \/>\neach. Assume that the firm could earn 10 percent on marketable securities and that there are 260 working<br \/>\ndays and hence 260 transfers from each of the ten lockbox locations per year.<br \/>\n(a) What is the total annual cost of operating the lockbox system?<br \/>\n(b) What is the dollar benefit of the system to Drugs \u2018R Us?<br \/>\n(c) Should the firm initiate the lockbox system?<br \/>\n16.4 \u2013 Langley Clinics, Inc., buys $400,000 in medical supplies each year (at gross prices) from its major<br \/>\nsuppliers, Consolidated Services, which offers Langley terms of 2.5\/10, net 45. Currently, Langley is<br \/>\npaying the supplier the full amount due on Day 45, but it is considering taking the discount, paying on Day<br \/>\n10, and replacing the trade credit with a bank loan that has a 10 percent annual cost.<br \/>\n(a) What is the amount of free trade credit that Langley obtains from Consolidated Services?<br \/>\n(Assume 360 days per year throughout this problem)<br \/>\n(b) What is the amount of costly trade credit?<br \/>\n(c) What is the approximate annual cost of the costly trade credit?<br \/>\n(d) Should Langley replace its trade credit with the bank loan? Explain your answer.<br \/>\n(e) If the bank loan is used, how much of the trade credit should be replaced?<br \/>\n16.5. \u2013 Milwaukee surgical supplies, Inc., sells on terms of 3\/10, net 30. Gross sales for the year are<br \/>\n$1,200,000, and the collections department estimates that 30 percent of the customers pay on the tenth day<br \/>\nand take discounts, 40 percent pay on the thirtieth day and the remaining 30 percent pay, on average, 40<br \/>\ndays after the purchase (Assume 360 days per year.)<br \/>\n(a) What is the firm\u2019s average collection period?<br \/>\n(b) What is the firm\u2019s current receivables balance?<br \/>\n(c) What would be the firm\u2019s new receivables balance if Milwaukee Surgical toughened up on its<br \/>\ncollection policy with the result that all nondiscount customers paid on the 30th day?<br \/>\n(d) Suppose that the firm\u2019s cost of carrying receivables was 8 percent annually. How much would<br \/>\nthe toughened credit policy save the firm in annual receivables carrying expense? (Assume that<br \/>\nthe entire amount of receivables had to be financed.)<br \/>\n17.1 \u2013 (a) Modern Medical Devices has a current ratio of 0.5. Which of the following actions would<br \/>\nimprove (i.e., Increase) this ratio?<\/p>\n<p><center><a href=\"http:\/\/onlineclassesguru.com\/orders\/ordernow\"><img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcTyj99p60XCLyLk1htB7-1neRt8-2QdnenNlQ&usqp=CAU\"target=\"_http:\/\/onlineclassesguru.com\/orders\/ordernow\"\/><\/center><p>","protected":false},"excerpt":{"rendered":"<p>Each day the clinic typically receives $1,000 in checks that take three days to clear. What is the clinics average net float? HSA 525 WEEK 9 HOMEWORK Homework 16.1 \u2013 On a typical day, Park Place Clinic writes $1,000 in checks. It generally takes four days for those checks to clear. Each day the clinic&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25518","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Each day the clinic typically receives $1,000 in checks that take three days to clear. What is the clinics average net float? - onlineclassesguru<\/title>\n<meta name=\"description\" content=\"Each day the clinic typically receives $1,000 in checks that take three days to clear. 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