Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. jumpdisk company writes checks averaging $32,000 a

Jumpdisk Company writes checks averaging $32,000 a day and it takes five days for these checks...

Free

50.1K

Verified Solution

Question

Finance

Jumpdisk Company writes checks averaging $32,000 a day and ittakes five days for these checks to clear. The firm also receiveschecks in the amount of $35,000 per day, but the firm loses fourdays while its receipts are being deposited and cleared. What isthe firm's net float in dollars?

Answer & Explanation Solved by verified expert
4.0 Ratings (538 Votes)

Disbursement Float = Average check written * Average number of days for checks to clear

                           = 32000* 5

                            = 160000

collection float =Average check received *Average number of days for checks to clear

                  = -35000* 4

                  = -140000

Net Float = Disbursement float +collection float

              = 160000+ (-140000)

              = 160000-140000

                = $ 20000
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Jumpdisk Company writes checks averaging $32,000 a day and ittakes five days for these checks to clear. The firm also receiveschecks in the amount of $35,000 per day, but the firm loses fourdays while its receipts are being deposited and cleared. What isthe firm's net float in dollars?

Other questions asked by students

Q

Find MIRR for the project with a cost of -$20,000 and subsequent cash flows of 10,000;...

Finance
Q

Let A be a square matrix defined by \( A = \begin{pmatrix}-3&-1&-3\\ 5&2&5\\ -1&-1&-1\end{pmatrix} \) (a)...

Advance Math
Q

Learning Outcomes: 1. Identify sentence and paragraph level language needed to convey a business voice in management...

Operations Management
Q

Points 1 Identify the magnetic material on 8 O Copper O Nickel Silver Gold ties

Biology
Q

131 Which of the following is true about the angluar momentum of a cylinder rolling...

Physics
Q

A car rental company's standard charge includes an initial fee plus an additional fee for...

Basic Math
Q

Let A 0 1 2 2 3 4 1 4 3 12 1 2 Find...

Algebra
Q

please answer one or both questions Discuss the following: The business model of payday...

Accounting
Q

Blossom University recently signed a contract with the bargaining unit that represents full-time professors. The...

Accounting
Q

Dont forget to answer the short answer questions. Using the information below,...

Accounting
Q

Plan your work as a BAS agent to manage resources, time and priorities by listing...

Accounting
Q

can you pleaze show your work ! Required information [The...

Finance