You have $36,600 on deposit with no outstanding checks or uncleared deposits. On

Question

You have $36,600 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $6,500 and then deposit a check for $4,500. (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 $36,600 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $6,500 and then deposit a check for $4,500. (Enter your answer as directed, but do not round intermediate calculations.)

Explanation / Answer

usually the time to clear the checks given to suppliers is 4 days

and the time to collect the checks given by the customers is 2 days

so the disbursement float= $ 6500*4=$ 26000

and collection float= $ 4500*2=$ 9000

the net float=$ 26000-$ 9000=$ 17000

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