In a typical month, Kids Fun’s Playground Company receives 45 cheques totalling $16,000. These cheques are...

In a typical month, Kids Fun’s Playground Company receives 45 cheques totalling $16,000. These cheques are delayed two days on average. What is the average daily float if there is 30 days in a month?

Expert Solution

Solution: Average Daily float= Float Amount * number of days it is outstanding/ number of days in a period

Average Daily float= $16000*2/30

=$ 16000*0.6667= 1066.67

jeff jeffy answered 2 years ago

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