On an Average Day,a Company Writes Checks Totaling $1,500

question 46

Multiple Choice

On an average day,a company writes checks totaling $1,500. These checks take 7 days to clear. The company receives checks totaling $1,800. These checks take 4 days to clear. The cost of debt is 9%. What is the firm's disbursement float?

• A) $-10,500
• B) $-8,700
• C) $1,800
• D) $10,500
• E) None of these.

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Definitions:

Corporate Income

The income generated by companies from their operations, including sales, services, and investments.

Taxed

Subjected to a charge or levy by the government on income, transactions, or property to fund public expenditures.

Sole Proprietorships

Sole proprietorships are businesses owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Sole Proprietor

The single person at the head of a sole proprietorship.