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PBJ Enterprises Estimates That It Takes, on Average, Three Days

question 54

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PBJ Enterprises estimates that it takes, on average, three days for their customers' payments to reach them, three days for the payments to be processed and deposited by their bookkeeping department, and three more days for the checks to clear once they're deposited. What is their collection float?


Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates and carries out its business activities.

Exchange Rates

The ratio at which one currency may be swapped for another, affecting global commerce and economic activities.

Investment in Martin

A specific financial investment made in a company or entity named Martin, denoting ownership or interest.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest payments are deducted from total revenue.

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