Your Firm Receives 40 Checks Per Month

question 32

Essay

Your firm receives 40 checks per month. Of these, 10 are for $1,200 and 30 are for $500. The delay for the $1,200 checks is 4 days; the $500 checks are delayed 6 days. What is the weighted average delay?

---

Definitions:

Stockholders' Equity

The owners' equity in a corporation, representing the residual assets of the company that would be due to stockholders after discharging all liabilities.

Long-Term Debt

Debt that is due for repayment more than one year in the future, often used for significant investments or acquisitions.

Currently Maturing

Refers to liabilities or obligations that are due to be paid or settled within the next fiscal year.

Current Liability

A financial obligation or debt that is due within one year from the balance sheet date or within the entity’s normal operating cycle, whichever is longer.