The Blue Star generally receives only three checks a month with amounts of $14,809, $16,211, and $14,750. These checks all have a collection delay of 1.5 days. Given this information, what is the amount of the average daily float? Assume every month has 30 days.

Question

Quizplus · Accepted Answer

The average daily float is calculated by summing the amounts of the checks, multiplying by the collection delay, and then dividing by the number of days in the month. So, $ \frac{(14809 + 16211 + 14750) \times 1.5}{30} = \frac{45570 \times 1.5}{30} = \frac{68355}{30} = 2278.5 $, which rounds to $2,289.

The Blue Star Generally Receives Only Three Checks a Month