Hsa 525 Chapter 16,17
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Hsa 525 Chapter 16, 17
16.1 The checks that Park Place writes create disbursement float, which is "good" float. The clinic has 1,000 x 4 days 4,000 in disbursement float. The checks that the clinic receives create collections float, which is "bad" float. The clinic has 1,000 x 3 days 3,000 in collections float. The clinics net float is 1,000: Net float Disbursement (good) float - Collections (bad) float 4,000 - 3,000 1,000. In essence, the balance on the firm's books is 1,000 less than the balance shown on the bank's books.
16.2 a. The annual cost of operating the lockbox system is 103,350:
Total cost (Fixed cost per month x 12)
(Number of locations x Number of transfers x Cost per transfer)
(6,500 x 12) (10 x 260 x ) 78,000 25,350
103,350.
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