Llcrys Corp. writes 52 checks a day for an average amount of $461 each. These checks generally clear the bank 2.5 days after the

Question

3 years ago

6

Llcrys Corp. writes 52 checks a day for an average amount of $461 each. These checks generally clear the bank 2.5 days after the

y are written. In addition, the firm generally receives 49 checks with an average amount of $508 each. Deposited amounts are available after an average of 2 days.
Required:
a. Is this a disbursement or collection float?

Business

1 answer:

valentina_108 [34] · Answer 1 · 2022-05-03T18:24:09+03:00

Answer:

$10,146

Explanation:

Llcrys Corp

Disbursment float = Checks ×average amount × numbers of clearing days

Disbursement float = 52× $461 × 2.5

Disbursement float = $59,930

Collection float = Checks ×average amount × numbers of average days

Collection float = 49 × $508× 2.00

Collection float = $49,784

Hence:

Disbursement float - Collection float

= $59,930 − $49,784

= $10,146

This is a DISBURSEMENT FLOAT of $10,146