Tanner Tavern writes four checks a day for an average amount of $5,400 each.These checks generally clear the bank four days after they are written.In addition,the firm generally receives and deposits checks amounting to $18,700 each day.All deposits are available on the next day.What is the firm's net float?
A) Net collection float of $13,200
B) Net collection float of $18,700
C) Net collection float of $22,300
D) Net disbursement float of $67,700
E) Net disbursement float of $86,400
Correct Answer:
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