Roberts Trucking writes two checks a day for an average amount of $17,750 each.These checks generally clear the bank 2.3 days after they are written.In addition, the firm generally receives and deposits checks amounting to $25,650 each day.All deposits are available the next day.What is the firm's net float?
A)Net collection float of $25,650
B)Net collection float of $56,000
C)Net collection float of $107,300
D)Net disbursement float of $56,000
E)Net disbursement float of $107,300

Question

Quizplus · Accepted Answer

Net disbursement float = Average daily checks written * Average float per check= $17,750 * 2.3 days= $40,825Net collection float = Average daily deposits * Average float per deposit= $25,650 * 1 day= $25,650Net float = Net disbursement float - Net collection float= $40,825 - $25,650= $15,175

Roberts Trucking Writes Two Checks a Day for an Average