1.)

Indicate the effect of the following on the cash cycle: Customers take longer to make the payment

Increase

No change

Decrease

2.)

Compute the cash cycle based on the following information:

Average Collection Period = 63 Accounts Payable Period = 33 Average Age of Inventory = 45

3.)

As of this morning, your firm had a ledger balance of $3,459 with no outstanding deposits or checks. Today, your firm deposited 9 checks in the amount of $232 each and wrote a check in the amount of $682. What is the amount of the collection float as of the end of the day?

Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

4.)

Month	Sales $	Month	Sales $
Jan	48,086	July	27,040
Feb	49,549	Aug	47,099
Mar	47,099	Sep	48,086
Apr	27,040	Oct	47,099
May	48,086	Nov	49,549
June	49,549	Dec	27,040

The company has estimated expenses as follows: General and administrative expenses: $2,956 Material purchases are 36 percent of sales. Material purchases are paid in the month following the purchase. Interest payment per month: $4,081 Rent expenses per quarter starting March: $2,891

Calculate the cash outflows for June.

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

5.)

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

Average A/P balance = $64,059 Annual Cost of Goods Sold = $430,360 Assume 365 days

Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

6.)

Month	Sales $	Month	Sales $
Jan	30,983	July	38,324
Feb	12,276	Aug	20,391
Mar	20,391	Sep	30,983
Apr	38,324	Oct	20,391
May	30,983	Nov	12,276
June	12,276	Dec	38,324

Sales are collected as follows:

In the month of Sales: 42% In the next month: 26% After 2 months: 6% After 3 months: remainder is collected

Calculate the cash collection for November.

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

7.)

The terms of the sale were 1/12, net 34. What is the effective annual rate of interest?

Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

8.)

Identify which of the following will increase the operating cycle. Choose only one.

Decrease in inventory turnover ratio

decrease in average collection period

decrease in accounts payable turnover ratio

decrease in accounts payable period

decrease in days' sales in inventory

9.)

ABC Company has annual sales of $435,938 and cost of goods sold of $198,600. The average accounts receivable balance is $95,399. How many days on average does it take the firm to collect its accounts receivable? Assume 365 days.

Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

10.)

ABC Corporation currently has an inventory turnover of 30.57, a payables turnover of 7.69, and a receivables turnover of 5.39. How many days are in the operating cycle?

Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.