Average Daily Collection of Cheques for a Firm Is $50,000

question 93

Multiple Choice

Average daily collection of cheques for a firm is $50,000.The firm also writes on the average $35,000 of cheques daily.If the collection period for cheques is 5 days, calculate the net float.

• A)-$75,000
• B)$75,000
• C)($425,000)
• D)$425,000 Payment float = 35,000 x 5 = 175,000
• Availability float = 50,000 x 5 = 250,000

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