Average time spent by each check waiting to be deposited

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Reference no: EM131783953

Accounts Receivable (AR) receives an average of 1,000 payments per week. There is an average of 500 checks waiting to be deposited. (a) What is the average time spent by each check waiting to be deposited? (b) Assume that the checks coming in are either small or large. Small checks are for an average of $500 and large checks are for an average of $5,000. 20% of the checks coming in are large with the rest being small. Currently no distinction is made between the large and small checks. As a result, 20% of the checks waiting to be processed are large. Is it worth reallocating resources so that large checks wait an average of 0.3 week while small checks wait an average of 0.8 week before being processed?

Reference no: EM131783953

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