Today, Merkel & Sons deposited three checks for $510; $690, and $420, respectively. These checks will be added to the firm's available balance tomorrow. The firm also wrote four checks today for $160 each. These are the only outstanding checks. The firm has $10,000 in its checking account.
(i) Compute the disbursement float.
(ii) Compute the collection float.
(iii) Compute the Net Float.
(iv) What is the firm's book balance?
(v) What is the firm's available balance (Bank balance)?
(vi) In a typical month, Oil Well Services receives checks worth a total of $211,000. On average, it takes 1.5 days for these checks to be added to the firm's available balance once the checks have been deposited. What is the average daily float assuming that each month has 30 days?