Question

You have $36,400 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $6,300 and then deposit a check for $4,700.

What are your disbursement, collection, and net floats?
Disbursement float $
Collection float $
Net float $

Answer 1

The disbursement float is $6,300, the collection float is $0, and the net float is $6,300.

Step-by-step explanation:

Disbursement float is the time between when you write a check and when the funds are actually deducted from your account. In this case, your disbursement float is the time between when you write the $6,300 check and when the funds are deducted from your account. It is $6,300.

Collection float is the time between when you deposit a check and when the funds are actually available in your account. In this case, your collection float is the time between when you deposit the $4,700 check and when the funds are available in your account. It is $0 because there are no uncleared deposits.

Net float is the difference between disbursement float and collection float. In this case, your net float is $6,300 - $0 = $6,300.