Marston Corp. writes 28 checks a day for an average amount of $398 each. These checks generally clear the bank 3 days after they are written. In addition, the firm generally receives 40 checks with an average amount of $502 each. Deposited amounts are available after an average of 2.5 days. What is the firm's disbursement float?

Question

Business

Walker Hardy

4 December, 12:47

Marston Corp. writes 28 checks a day for an average amount of $398 each. These checks generally clear the bank 3 days after they are written. In addition, the firm generally receives 40 checks with an average amount of $502 each. Deposited amounts are available after an average of 2.5 days. What is the firm's disbursement float?

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Answers (1)

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Ezra · Answer 1

The Marston Corp. disbursement float is $ (16,768.00)

Explanation:

The firm writes 28 checks a day for an average amount of $398 each, is equal to say = 28 * $398 = $ 11,144.00. If these checks generally clear the bank 3 days after they are written, then = $ 11,144.00 * 3 = $ 33,432.00

And, the firm generally receives 40 checks with an average amount of $502 each, is equal to say = 40 * $502 = $ 20,080.00. If the deposited amounts are available after an average of 2.5 days, then = $ 20,080.00 * 2.5 = $ 50,200.00

The Marston Corp. disbursement float is = $ 33,432.00 - $ 50,200.00 =

$ (16,768.00)