1. As of this morning, your firm had a ledger balance of $4,699 with no outstanding deposits or checks. Today, your firm deposited 9 checks in the amount of $483 each and wrote a check in the amount of $796. What is the amount of the collection float as of the end of the day?
2. KMS corporation has assets of $800 million, $80 million of which are cash. It has debit of $266.7 million. If KMS repurchases $40 million of its stock:
a. What changes will occur on its balance sheet?
b. What will be its new leverage ratio?