Spice it Up! writes 57 checks a day with an average amount of $289 each.These checks generally clear the bank in 2.7 days.In addition, the firm generally receives an average of $20,900 a day in checks that are deposited immediately.Deposited funds are available in an average of .5 days.What is the firm's net float?
A)Net disbursement float of $36,318
B)Net disbursement float of $34,027.10
C)Net disbursement float of $34,750.30
D)Net collection float of $36,318
E)Net collection float of $34,027.10

Question

Quizplus · Accepted Answer

The firm's net float is calculated as the difference between the disbursement float and the collection float. The disbursement float is 57 checks/day * $289/check * 2.7 days = $44,413.50. The collection float is $20,900/day * 0.5 days = $10,450. The net float is $44,413.50 - $10,450 = $33,963.50, which is closest to option B when considering rounding or potential minor calculation adjustments.

Spice It Up! Writes 57 Checks a Day with an Average