Question

On an average day, DDL Enterprises writes checks totaling $1,500. These checks take an average of 5 days to clear. On an average day, DDL receives checks totaling $1,700 which take 4 days to clear. The cost of debt is 7.5 percent. What is the firm's disbursement floa

Answer 1

If on an average day, DDL Enterprises writes checks totaling $1,500. These checks take an average of 5 days to clear. The firm's disbursement float is $7500.

Disbursement Float

Using this formula

Disbursement Float=Average daily checks written×Average time for written checks to clear

Where:

Average daily checks written $1,500

Average time for written checks to clear5

Let plug in the formula

Disbursement Float=$1500×5

Disbursement Float=$7,500

Therefore If on an average day, DDL Enterprises writes checks totaling $1,500. These checks take an average of 5 days to clear. The firm's disbursement float is $7500.

Learn more about Disbursement Float here:https://brainly.com/question/15353143

#SPJ1