Your firm receives 85 cheques from customers on an average day. These cheques, on average, are worth $132 each, and are processed and clear the bank in 3 days. In addition, your firm disburses 10 cheques a day with an average amount of $10,400. These cheques clear your bank in 2 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 these cheques to clear. So, it's 85 cheques * $132 each * 3 days = $33,660.

Your Firm Receives 85 Cheques from Customers on an Average