Answer:
Explanation:
Given the following :
Average checks written per day =$41, 500
Clearing time = 6days
Average checks received per day = 52,500
Time available = 4 days
A.) Disbursement float :
Checks written * clearing time
$41,500 * 6days = $249,000
COLLECTION FLOAT :
Checks received * available time
$52,500 * 4 = $210, 000
NET FLOAT :
$(249,000 - 210,000) = $39,000
B.) if collected funds are available in two days :
Disbursement float :
Checks written * clearing time
$41,500 * 6days = $249,000
COLLECTION FLOAT :
Checks received * available time
$52,500 * 2 = $105,000
NET FLOAT :
$(249,000 - 105,000) = $144, 000
