On an average day, a company writes 60 checks worth a total of $8,225 that clear in 2

Finance Oct 28, 2022

On an average day, a company writes 60 checks worth a total of $8,225 that clear in 2.5 days. The company also collects 72 checks worth a total of $10,540 that clear in 2 days. What is the company's average collection float?

Expert Solution

Answer:

Average Collection Float = Number of Collections Worth * Clearing days

Average Collection Float = 10540 * 2

Average Collection Float = 21080

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