The UpTowner writes 39 checks a day for an average amount of $918 each.These checks generally clear the bank 2.5 days after they are written.In addition, the firm generally receives an average of $53,419 a day in checks.The checks that are received are deposited immediately and the funds are generally available the following day.What is the amount of the firm's disbursement float?
A)$36,086
B)$89,505
C)$17,333
D)$53,419
E)$106,838

Question

Quizplus · Accepted Answer

The disbursement float is calculated as the number of checks written per day multiplied by the average amount per check, and then multiplied by the number of days it takes for the checks to clear. So, 39 checks/day * $918/check * 2.5 days = $89,505.

The UpTowner Writes 39 Checks a Day for an Average