Jumpdisk Company Writes Checks Averaging $15,000 a Day, and It

question 140

Multiple Choice

Jumpdisk Company writes checks averaging $15,000 a day, and it takes 5 days for these checks to clear. The firm also receives checks in the amount of $17,000 per day, but the firm loses three days while its receipts are being deposited and cleared. What is the firm's net float in dollars?

• A) $126,000
• B) $ 75,000
• C) $ 32,000
• D) $ 24,000
• E) $ 16,000

---

Definitions:

Pledging

The act of committing or promising to support something, often by donating money or another resource.

Finance Company

A business that provides loans to individuals or organizations, making profits from the interest charged on these loans.

Receivables

Money owed to a company by its clients or customers for goods or services provided on credit.

Floor Planning

A method used in retail and wholesale to finance inventory, where a loan covers the cost of goods held in stock until they are sold.