1. ABC Company has a cash cycle of 11.06 days, an operating cycle of 23.05 days, and an average collection period of 7 days. The company reported cost of goods sold of $243,023. What is the company's average balance in Accounts Payable?
2. ABC Company has an average collection period of 39 days and factors all of its receivables immediately at a 1.5 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing?
3. ABC Company writes 243 checks a day for an average amount of $553 each. These checks generally clear the bank in 5 days. In addition, the firm generally receives an average of $140,484 a day in checks that are deposited immediately. Deposited funds are available in 1 days. What is the firm's net float?