The Blue Star generally receives only 3 checks a month.The check amounts and the collection delay for each check are shown below.Given this information,what is the amount of the average daily float? Assume every month has 30 days.

Question

Quizplus · Accepted Answer

To find the average daily float, we need to first find the total float for the month, which can be calculated by adding up the product of check amount and delay for each check:

( $4,000 x 2 ) + ($2,500 x 4) + ($3,000 x 7) = $8,000 + $10,000 + $21,000 = $39,000

Next, we can divide this total float by the number of days in the month to get the average daily float:

$39,000 / 30 = $1,300

Therefore, the best choice is B) $1,376.67, which is closest to the calculated average daily float.

The Blue Star Generally Receives Only 3 Checks a Month