Brewster's Writes 145 Checks a Day for an Average Amount

question 111

Multiple Choice

Brewster's writes 145 checks a day for an average amount of $211 each. These checks generally clear the bank 3.5 days after they are written. In addition, the firm generally receives an average of $48,700 a day in checks. The checks that are received are deposited immediately and the funds are generally available the following day. What is the amount of the firm's disbursement float?

• A) $104,625.00
• B) $107,082.50
• C) $155,255.50
• D) $170,450.00
• E) $48,700.00

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Definitions:

Bumper Crop

An exceptionally large harvest of crops, often resulting from favorable growing conditions.

Excess Supply

A situation where the quantity of a good or service offered for sale exceeds the quantity demanded at the current price.

Price Of Cheeseburgers

The amount of money required to purchase a cheeseburger in a particular market, influenced by factors such as cost of ingredients, demand, and competition.

Supply Shifts

Changes in the supply curve of a product or service due to external factors, leading to a different quantity supplied at each price level.