1. ABC Company has annual sales of $400,000 and cost of goods sold of $197,844. The accounts payable period is 30.28 days. What is the average accounts payable balance?

2.ABC Corporation currently has an inventory turnover of 17.98, a payables turnover of 6.95, and a receivables turnover of 21.65. How many days are in the operating cycle?

3. ABC Company has an average collection period of 27 days and factors all of its receivables immediately at a 3.4 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing? 4.ABC Company has annual sales of $471,932 and cost of goods sold of $198,600. The average accounts receivable balance is $116,398. How many days on average does it take the firm to collect its accounts receivable? Assume 365 days.

5.ABC Company has a cash cycle of 12.79 days, an operating cycle of 23.62 days, and an average collection period of 6 days. The company reported cost of goods sold of $288,245. What is the company's average balance in Accounts Payable? 6.ABC Corporation currently has an inventory turnover of 5.64, a payables turnover of 16.14, and a receivables turnover of 10.18. How many days are in the cash cycle?

7.

Month	Sales $	Month	Sales $
Jan	48,078	July	13,404
Feb	33,023	Aug	39,643
Mar	39,643	Sep	48,078
Apr	13,404	Oct	39,643
May	48,078	Nov	33,023
June	33,023	Dec	13,404

Sales are collected as follows:

In the month of Sales: 30% In the next month: 21% After 2 months: 12% After 3 months: remainder is collected

Calculate the cash collection for December.

8.Compute the Accounts Payable (A/P) period based on the following information:

Average A/P balance = $52,661 Annual Cost of Goods Sold = $319,666 Assume 365 days

9.

Month	Sales $	Month	Sales $
Jan	29,180	July	44,869
Feb	25,489	Aug	34,089
Mar	34,089	Sep	29,180
Apr	44,869	Oct	34,089
May	29,180	Nov	25,489
June	25,489	Dec	44,869

Sales are collected as follows:

In the month of Sales: 29% In the next month: 32% After 2 months: 6% After 3 months: remainder is collected

Calculate the cash collection for November.

10.As of this morning, your firm had a ledger balance of $4,985 with no outstanding deposits or checks. Today, your firm deposited 2 checks in the amount of $428 each and wrote 3 checks in the amount of $885 each. What is the amount of the disbursement float as of the end of the day?

11.ABC Company writes 163 checks a day for an average amount of $615 each. These checks generally clear the bank in 4 days. In addition, the firm generally receives an average of $175,203 a day in checks that are deposited immediately. Deposited funds are available in 1 days. What is the firm's net float?

12.

Month	Sales $	Month	Sales $
Jan	29,547	July	28,671
Feb	15,691	Aug	16,148
Mar	16,148	Sep	29,547
Apr	28,671	Oct	16,148
May	29,547	Nov	15,691
June	15,691	Dec	28,671

Sales are collected as follows:

In the month of Sales: 41% In the next month: 28% After 2 months: 8% Remainder is considered as bad debt and is not collected.

Calculate the cash collection for June.

13.OnJuly 15^th, you purchased $10,000 worth of goods. The terms of the sale were 1/8, net 49. What is the effective annual rate of interest for the credit period for this sale?

14.

Month	Sales $	Month	Sales $
Jan	31,011	July	39,108
Feb	10,429	Aug	12,354
Mar	12,354	Sep	31,011
Apr	39,108	Oct	12,354
May	31,011	Nov	10,429
June	10,429	Dec	39,108

The company has estimated expenses as follows: General and administrative expenses: $4,641 Material purchases are 74 percent of sales. Material purchases are paid in the month following the purchase. Interest payment per month: $2,457 Rent expenses per quarter starting March: $9,527

Calculate the cash outflows for June.

15.Compute the cash cycle based on the following information:

Average Collection Period = 47 Accounts Payable Period = 48 Average Age of Inventory = 67

16.As of this morning, your firm had a ledger balance of $4,402 with no outstanding deposits or checks. Today, your firm deposited 4 checks in the amount of $161 each and wrote a check in the amount of $660. What is the amount of the collection float as of the end of the day?