Hoyes Lumber generally receives three checks per month. A check for $11,520 clears in 4 days,...

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Hoyes Lumber generally receives three checks per month. A check for $11,520 clears in 4 days,...

Hoyes Lumber generally receives three checks per month. A check for $11,520 clears in 4 days, a check for $6,600 clears in 3 days, and a check for $7,810 clears in 2 days. Assuming 30 days in each month, what is the average daily float?

a) $2337.67

b) $2716.67

c) $2552.67

d) $288.11

e) $864.33

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Answer 1

Answer #1

Answer :

Average daily float = [ ( Amount * delay days ) ]

= [ ( $11,520 * 4 ) + ( $6,600 * 3 ) + ( $7,810 * 2 ) ] / 30 days

= [ $46,080 + $19,800 + $15,620 ] / 30 days

= 81,500 / 30

= $2,716.67

So , Average Daily Float = $2,716.67 ( i.e., option b ).

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Answer 2

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