The Food Wholesaler generally receives 4 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 add up the collection delay for each check and divide by the number of checks, and then divide by 30 (the number of days in a month) to get the average daily float.

The calculation would be:

[(2 x $10,000) + (3 x $12,000) + (5 x $13,000) + (7 x $11,000)] / 4 / 30 = $22,236.67

Therefore, the best choice is C, $22,236.67.

The Food Wholesaler Generally Receives 4 Checks a Month