Jumpdisk Company writes checks averaging $15,000 a day, and it takes 5 days for these checks to clear. The firm also receives checks in the amount of $17,000 per day, but the firm loses three days while its receipts are being deposited and cleared. What is Jumpdisk's net float?

Question

Quizplus · Accepted Answer

The net float is calculated by subtracting the disbursement float from the collection float. Disbursement float is $15,000 * 5 = $75,000, and collection float is $17,000 * 3 = $51,000. Therefore, the net float is $75,000 - $51,000 = $24,000.

Jumpdisk Company Writes Checks Averaging $15,000 a Day, and It