Question

Suppose a hospital writes checks of $100,000 per day and it takes, on average, seven days for those to be received and to clear the banking system. Furthermore, the hospital receives $120,000 in checks daily that take four days to be deposited and credited. What is the hospital’s float? $100,000 $120,000 $220,000 $240,000 $440,000

Name: suppose a hospital writes checks of 100000 per day and it takes on average seven days for those to be received and to clear the banking system furthermore the hospital receives 120000 in che 57399
Uploaded: 2023-11-18T19:09:16-08:00
Duration: 2 min 15 s
Channel: Akash M
Description: suppose a hospital writes checks of 100000 per day and it takes on average seven days for those to be received and to clear the banking system furthermore the hospital receives 120000 in che 57399

          Suppose a hospital writes checks of $100,000 per day and it takes, on average, seven days for those to be received and to clear the banking system. Furthermore, the hospital receives $120,000 in checks daily that take four days to be deposited and credited. What is the hospital’s float?
$100,000
$120,000
$220,000
$240,000
$440,000

Added by Juan G.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

11/18/2023

Step 1

The hospital writes checks of $100,000 per day, and these checks take an average of 7 days to clear. Therefore, the total outstanding checks can be calculated as: - Outstanding checks = Daily checks written × Days to clear - Outstanding checks = $100,000 × 7 = Show more…

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Suppose a hospital writes checks of $100,000 per day and it takes, on average, seven days for those to be received and to clear the banking system. Furthermore, the hospital receives $120,000 in checks daily that take four days to be deposited and credited. What is the hospital’s float? $100,000 $120,000 $220,000 $240,000 $440,000