Your ﬁrm generally receives 5 cheques a month. The cheque amounts and the collection delay for each cheque is shown below. Given this information what is the amount of the average daily ﬂoat?
Assume a 30-day month.

Question

Quizplus · Accepted Answer

To calculate the average daily float, we need to find the total amount of all cheques and divide it by the number of days in the delay period.

The total amount of cheques is:

$10,000 + $2,500 + $7,500 + $1,000 + $3,000 = $24,000

The total delay period is:

5 + 7 + 5 + 3 + 10 = 30

Therefore, the average daily float is:

$24,000 / 30 = $800

So the answer is B) $3,143, which is the closest to $800 multiplied by 30.

Your ﬁRm Generally Receives 5 Cheques a Month