You have $36,100 on deposit with no outstanding checks or uncleared deposits. On

Question

You have $36,100 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $4,000 and then deposit a check for $7,000. (Enter your answer as directed, but do not round intermediate calculations.)

What are your disbursement, collection, and net floats? (Negative amounts should be indicated by a minus sign.)

You have $36,100 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $4,000 and then deposit a check for $7,000. (Enter your answer as directed, but do not round intermediate calculations.)

Explanation / Answer

Disbursement float is when a person writes a check and that is not stll cleared. Here the discbursement float is -$4,000 (negative)

Disbursement float = -$4,000

Collection float is when a checked is deposited by you and is not cleared by the bank. Here the collection float os $7,000 (Postive)

Collection float = $7,000

Net float = Collection float - disbursal float = 7,000-4,000 =$3,000

So total bank balance = 36,100 + net float = 36,100 + 3,000 = $39,100

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