You have $37,200 on deposit with no outstanding checks or uncleared deposits. On

Question

You have $37,200 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $7,100 and then deposit a check for $3,900. (Enter your answer as directed, but do not round intermediate calculations.)

What are your disbursement, collection, and net floats? (Negative amounts should be indicated by a minus sign.)

You have $37,200 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $7,100 and then deposit a check for $3,900. (Enter your answer as directed, but do not round intermediate calculations.)

Explanation / Answer

generally checks given to customers are presented for collection with in 4 days

checks given by customers are credited into the account in 2 days

so the disbursement float= $ 7100*4= $ 28,400

collection float =$ 3,900*2= $ 7800

net float= disbursement float- collection float

$ 28,400-$ 7800=$ 20,600

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