Each Business Day,on Average,a Company Writes Checks Totaling $26,000 to Pay

question 18

Multiple Choice

Each business day,on average,a company writes checks totaling $26,000 to pay its suppliers.The usual clearing time for the checks is 5 days.Meanwhile,the company is receiving payments from its customers each day,in the form of checks,totaling $40,000.The cash from the payments is available to the firm after 2 days.What is the amount of the firm's average net float?

• A)$30,00
• B)$50,000
• C)$80,000
• D)$110,000
• E)$130,000

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Definitions:

Free Trade

Global trade allowed to proceed without any tariffs, quotas, or limitations, following its natural flow.

Wagons

A four-wheeled vehicle typically used for transporting goods or passengers, historically drawn by animals.

Consumers

Individuals or entities that purchase goods or services for personal use.

Tariff

A governmental policy tool used to control the flow of international trade through taxes on imports and exports.