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Coyote Valley Products Has Daily Cash Collections of $500,000

Question 54

Multiple Choice

Coyote Valley Products has daily cash collections of $500,000. The cash management staff has determined (1) customers' payments are in the mail an average of 3 days; (2) processing after receipt averages 1 day; and (3) after deposit funds are cleared on average in 2 days. Assume a 365 day year.
-Refer to Coyote Valley Products.What is the firm's collection float,in days?


A) 6
B) 5
C) 4
D) 3

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