1. At the beginning of the year, you have an outstanding short-term loan of $2,575 which was used to cover your cash needs for the previous year. The interest expense for the year is $305. The projected net cash flow for this year is $1,045, prior to any payment of principal or interest on this loan. What is your anticipated loan balance at year end?
2. On an average day, Plastics Enterprises writes 42 checks with an average amount of $587. These checks clear the bank in an average of 2 days. What is the average amount of the disbursement float?
3. On average, your firm receives 62 checks a day from customers. These checks, on average, are worth $39.90 each and clear the bank in 1.5 days. In addition, your firm disburses 38 checks a day with an average amount of $89.50. These checks clear your bank in 2 days. What is the average amount of the collection float?