On an average day,Tennis R Us writes checks totaling $2,000. These checks take 3 days to clear. The company receives checks totaling $1,800. These checks take 2 days to clear. The cost of debt is 8%. What is the firm's disbursement float?

Question

Quizplus · Accepted Answer

Disbursement float is calculated as the amount of checks written multiplied by the number of days they take to clear. Here, $2,000 in checks take 3 days to clear, resulting in a disbursement float of $6,000 (2,000 * 3).

On an Average Day,Tennis R Us Writes Checks Totaling $2,000