Answer:
$63,679
Explanation:
Kl textiles
Disbursement Float can occur in a situation where a person, company or organisation spent an amount of money in which the amount spent has not be removed or taken out of the person, company or organisation
bank account. Example is written out a checks in which the checks has not be cleared form the company bank account till after some days
Disbursement float =
22 × $827 ×3.5
= $63,679
Therefore the amount of the firm's disbursement float will be $63,679 because Kl textiles writes 22 checks a day for an average amount of $827 each in which the checks generally clear the bank 3.5 days after it was written.
Answer:
The disbursement float is $63,679
Explanation:
In this question, we are asked to calculate the firm’s disbursement float
This can be calculated mathematically;
Mathematically;
disbursement float = Total checks a day * Average amount * time taken for clearing
From the question, we can identify the equation parameters as follows;
The number of total checks in a day = 22
The average amount of the checks is $827
The time taken for clearing is 3.5 days
Now, let’s plug these parameters
disbursement float = 22 * 827 * 3.5 = $63,679
