Your Firm Receives 30 Cheques from Customers on an Average

question 103

Multiple Choice

Your firm receives 30 cheques from customers on an average day. These cheques, on average, are worth $45 each, and are processed and clear the bank in 5 days. In addition, your firm mails out 20 cheques a day with an average amount of $42. These cheques clear your bank in 4 days. What is the average amount of the collection float?

• A) $3,360
• B) $3,390
• C) $6,750
• D) $7,240
• E) $10,110