Question

Your neighbor goes to the post office once a month and picks up two checks, one for $16,000 and one for $5,000. The larger check takes 2 days to clear after it is deposited; the smaller one takes 3 days. Assume 30 days per month.

   

Requirement 1:

What is the total float for the month?

(Click to select)$47,000$45,120$48,880$21,000$58,000

  

Requirement 2:

What is the average daily float?

(Click to select)$16,166.67$1,566.67$480$48,333.33$64,520

   

Requirement 3:
(a)	What is the average daily receipts?
	(Click to select)$32,500.00$700.00$735.00$665.00$714.00

   

(b)	What is the weighted average delay?
	(Click to select)2.24 days3.79 days2.76 days3.78 days3.80 days

rev: 09_21_2012

Answer 1

Requirement:1

Total float for the month

ans)Total float = smaller check amount × smaller check delay + larger check amount × larger check delay

=16000*2+5000*3

=32000+15000

=$ 47,000 total float for the month

Requirement:2

Average daily float = total float / number days in a month

=47000/30

=1566.67$  average daily float

Requirement:3(a)

Average daily receipt = total receipt / number days in a month

= 16000+5000

= 21000/30

= $ 700 average daily receipts

Requirement:3(b)

Average delay= larger check delay ( larger check amount / total receipt ) + smaller check delay ( smaller check amount / total receipt)

Total receipt= smaller check amount + larger check amount

= 16000+5000

=21,000

=2(16000/21000)+3(5000/21000)

=1.52+0.714

= 2.24$ weighted average delay