Wintoki Company writes cheques averaging $15,000 a day,and it takes 5 days for these cheques to clear.The firm also receives cheques in the amount of $17,000 per day,and it takes 3 days for these cheques to be deposited and cleared.What is the firm's net float,in dollars?
A)$20,577
B)$21,660
C)$22,800
D)$24,000

Question

Quizplus · Accepted Answer

The firm's net float is calculated as the difference between the disbursement float and the collection float. Disbursement float is $15,000 * 5 = $75,000, and collection float is $17,000 * 3 = $51,000. The net float is $75,000 - $51,000 = $24,000.

Wintoki Company Writes Cheques Averaging $15,000 a Day,and It Takes