The Following Information Is from the Records of Stretch Limousines

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The following information is from the records of Stretch Limousines, Inc.:

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Definitions:

Ledger Float

The time difference between when a check is written and when it is actually deducted from the payer's account.

Collection Float

The time period between when a check is deposited into a bank account and when the funds are available.

Lockbox System

A service offered by banks to companies for the collection of payments from customers, speeding up the process of receiving and depositing checks.

Collection Float

The time between when a check is deposited into a bank and when the amount is credited, affecting cash flow management.