On a typical day, ABC company writes checks totaling $3,000. These checks are clear in 7 days. Simultaneously, the company receives $1,700. The cash is available in 2 days on average. 

a. Calculate the disbursement, the collection, and the net floats 

b. Interpret the result. 

At any given time, the firm typically has uncashed checks outstanding of $21,000. At the same time, it has uncollected receipts of $3,400. Thus, the firm's book balance is typically $17,600 less than its available balance for a positive $17,600 net float.
 

Answer rating: 100% (QA)

On a typical day ABC company writes checks totaling 3000 These checks are clear in 7 days S... View the full answer