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?

Question

Yoselin Pope

Business

27 February, 23:21

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?

+2

Answers (1)

Know the Answer?

Braylon Bean · Answer 1

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