Problem:
Decatur Arts Center writes 158 checks a day for an average amount of $211 each. These checks generally clear the bank 3.5 days after they are written. In addition, the firm generally receives an average of $50,000 a day in checks. The checks that are received are deposited immediately and the funds are generally available the following day.
Required:
Question: What is the amount of the firm's disbursement float?
A. $104,625.00
B. $116,683.00
C. $155,255.50
D. $170,450.00
E. $50,000.00
Note: Provide support for your rationale.