Calculating Net Float Each business day, on average, a company writes cheques totalling €125,000 to pay its suppliers. The usual clearing time for the cheques is 3 days. Meanwhile, the company is receiving payments from its customers each day, in the form of cheques, totalling €140,000. The cash from the payments is available to the firm after 4 days.

(a) Calculate the company’s disbursement float, collection float and net float.

(b) What would be the company’s net float if the collected funds were available in 2 days instead of 4?