Question

At the beginning of the day, a company has a cash balance of $11,950 and no float. During the day, the company wrote three checks for $740, $1,075, and $1,440. The company also deposited checks for $1,305 and $2,080. What is the company's disbursement float?


Multiple Choice

$6,640


$130


$3,385


$8,565


$3,255

Answer 1

To calculate the company's disbursement float, we first need to determine the total amount of checks written and the amount of checks deposited.

1. **Total checks written (disbursements):**
- Check 1: $740
- Check 2: $1,075
- Check 3: $1,440

Total checks written = $740 + $1,075 + $1,440 = $3,255

2. **Total checks deposited (receipts):**
- Deposit 1: $1,305
- Deposit 2: $2,080

Total deposits = $1,305 + $2,080 = $3,385

3. **Calculating disbursement float:**
Disbursement float refers to the total amount of checks that have been issued but have not yet cleared the bank.

Since the company has no float at the beginning, the disbursement float is simply the total checks written:

Disbursement Float = Total checks written = $3,255

Therefore, the correct answer is:

**$3,255**