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:

Cope

To deal effectively with something difficult or challenging, often involving adaptive strategies or mechanisms.

Demands

Demands consist of the needs or desires that individuals or groups assert with the expectation of fulfillment.

Corporate Policy

Guidelines and rules established by a business or corporation to govern its operations, employee conduct, and ethical standards.

Paid Labor Force

Individuals who are employed and receive compensation for their work or services.