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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?

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  • 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

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