On an average day,a company writes cheques totaling €1,500.These cheques take 7 days to clear.The company receives cheques totaling €1,800.These cheques take 4 days to clear.The cost of debt is 9%. What is the firm's net float?

Question

Quizplus · Accepted Answer

The firm's net float is calculated as the difference between the disbursement float and the collection float. Disbursement float = €1,500 * 7 = €10,500. Collection float = €1,800 * 4 = €7,200. Net float = €10,500 - €7,200 = €3,300.

On an Average Day,a Company Writes Cheques Totaling €1,500