View the step-by-step solution to:

ABC Company writes 48 checks a day for an average amount of $1,055 each. These checks generally clear the bank in 4 days.

ABC Company writes 48 checks a day for an average amount of $1,055 each. These checks generally clear the bank in 4 days. In addition, the firm generally receives an average of $4,577 a day in checks that are deposited immediately.Deposited funds are available in 2 days. What is the firm's net float?

Top Answer

Sign up to view the full answer

Other Answers

Attached is a detailed explanation... View the full answer

2 comments
  • Disbursement Float = 48*1055*4 = $202,560 :- So Net Disbursement Float = 202560-9154 = $193,406
    • aditiagarwala18
    • May 06, 2018 at 9:22pm
  • Apologies for the typo earlier I missed on 4 days of clearing time
    • aditiagarwala18
    • May 06, 2018 at 9:22pm

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online