Your ﬁrm receives 10 cheques per month.Of these, 6 are for €1,000 and 4 are for €500.The delay for the €1,000 cheques is 5 days, and the €500 cheques are delayed 8 days.Calculate the average
Daily ﬂoat.

Question

Quizplus · Accepted Answer

The average daily float is calculated by multiplying the amount of each cheque by the number of days it is delayed, summing these products, and then dividing by the total number of days in the month. For €1,000 cheques: 6 cheques * €1,000 * 5 days = €30,000. For €500 cheques: 4 cheques * €500 * 8 days = €16,000. Total float = €30,000 + €16,000 = €46,000. Average daily float = €46,000 / 30 days = €1,533.33.

Your ﬁRm Receives 10 Cheques Per Month