You have 35900 on deposit with no outstanding checks or uncl

You have $35,900 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $4,200 and then deposit a check for $6,800. (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.)

Solution

writing a check is disbursement of cash

so

disbursement float = $4200

depositing a check is collectiong money

so

collection float = 6800

Net float = collections - disbursements

= 6800 - 4200

= 2600