Question

Kl textiles writes 22 checks a day for an average amount of $827 each. these checks generally clear the bank 3.5 days after they are written. in addition, the firm generally receives an average of $23,902 a day in checks. deposited amounts are available after one day. what is the amount of the firm's disbursement float?

Answer 1

Answer:

The disbursement float is $63,679

Explanation:

In this question, we are asked to calculate the firm’s disbursement float

This can be calculated mathematically;

Mathematically;

disbursement float = Total checks a day * Average amount * time taken for clearing

From the question, we can identify the equation parameters as follows;

The number of total checks in a day = 22

The average amount of the checks is $827

The time taken for clearing is 3.5 days

Now, let’s plug these parameters

disbursement float = 22 * 827 * 3.5 = $63,679

Answer 2

Answer:

$63,679

Explanation:

Kl textiles

Disbursement Float can occur in a situation where a person, company or organisation spent an amount of money in which the amount spent has not be removed or taken out of the person, company or organisation

bank account. Example is written out a checks in which the checks has not be cleared form the company bank account till after some days

Disbursement float =

22 × $827 ×3.5

= $63,679

Therefore the amount of the firm's disbursement float will be $63,679 because Kl textiles writes 22 checks a day for an average amount of $827 each in which the checks generally clear the bank 3.5 days after it was written.