Charlies's writes 135 checks a day for an average amount of $480 each.These checks generally clear the bank in 3 days.In addition,the firm generally receives an average of $159,000 a day in checks that are deposited immediately.Deposited funds are available in 1.5 days.What is the firm's net float?
A)Net disbursement float of $94,200
B)Net disbursement float of $44,100
C)Net disbursement float of $34,750
D)Net collection float of $44,100
E)Net collection float of $94,200

Question

Quizplus · Accepted Answer

Collection float = 1.5 × $159,000 = $238,500; Disbursement float = 135 × $480 × 3 = $194,400; Net collection float = $238,500 - $194,400 = $44,100

Charlies's Writes 135 Checks a Day for an Average Amount