Problem:
On a typical day,U.C. Stars Vision Center writes $40,000 in checks, which take five days to clear. They receive an average of $50,000 in checks from patients on a daily basis, which take three days to clear.
Required:
Question 1: What is U.C.'s disbursement float?
Question 2: What is U.C.'s collections float?
Question 3; What is U.C.'s net float?
Question 4: Does this mean for U.C. will need to fund, or invest the float?
Note: Please show the work not just the answer.