Your firm receives 10 checks per month. Of these,6 are for $1,000 and 4 are for $500. The delay for the $1,000 checks is 5 days,and the $500 checks are delayed 8 days. Calculate the average daily float.

Question

Quizplus · Accepted Answer

The average daily float is calculated by multiplying the amount of each check by the number of days it is delayed, summing these products, and then dividing by the total number of days in the month. For $1,000 checks: 6 checks * $1,000 * 5 days = $30,000. For $500 checks: 4 checks * $500 * 8 days = $16,000. Total float = $30,000 + $16,000 = $46,000. Average daily float = $46,000 / 30 days = $1,533.33.

Your Firm Receives 10 Checks Per Month