Answer:
The disbursement float is $ 68,000, collection float is -$44,000 and net float is $24,000.
Explanation:
DISBURSEMENT FLOAT -
Formula that can be used to calculate the disbursement float is =
Amount of average monthly check written X Average number of days it
takes to clear check
Where, amount of average monthly check = $17,000
and average number of days for it to be cleared = 4 days
Disbursement float = $17,000 x 4
= $68,000
COLLECTION FLOAT -
Formula that can be used to calculate the collection float is =
Amount of average monthly check received X Average number of days it
takes to clear check
Where, amount of average monthly check =-$22,000
and average number of days for it to be cleared = 2 days
Collection float = -$22,000 x 2
= -$44,000
NET FLOAT -
Formula that can be used to calculate the NET float is =
DISBURSEMENT FLOAT - COLLECTION FLOAT
= $68,000 - $44,000
= $24,000
