During a normal month, Jim's Gems receives a total of nine checks with a total value of $97,500.On average, it takes 1 day from the date of deposit for the funds from these checks to be available to the firm.Assume each month has 30 days.What is the average daily float?
A)$3,250
B)$13,000
C)$26,000
D)$65,000
E)$52,000

Question

Quizplus · Accepted Answer

Average daily float = (Total value of checks / Number of checks) * Average collection period= (97,500 / 9) * 1= $13,000

During a Normal Month, Jim's Gems Receives a Total of Nine