Your firm receives 30 cheques from customers on an average day. These cheques, on average, are worth $45 each, and are processed and clear the bank in 5 days. In addition, your firm mails out 20 cheques a day with an average amount of $42. These cheques clear your bank in 4 days. What is the average amount of the collection float?

Question

Quizplus · Accepted Answer

The average amount of the collection float is calculated by multiplying the average number of cheques received per day by the average value of each cheque and then by the number of days it takes for the cheques to clear. So, for 30 cheques at $45 each, taking 5 days to clear, the calculation is 30 * $45 * 5 = $6,750.

Your Firm Receives 30 Cheques from Customers on an Average