1.Baker's Men's Wear has a 5.5%, semiannual coupon bond outstanding with a current market price of $978.90. The bond has a par value of $1,000 and a yield to maturity of 5.76%. How many years is it until this bond matures?

A.12.27 years

B.22.19 years

C.27.21 years

D.11.10 years

2.What is the future value of $3,497 invested for 15 years at 7.5% compounded annually?

A.$10,347.19

B.$14,289.16

C.$14,911.08

D.$15,267.21

3.You want to have $260,000 saved 15 years from now. How much less do you have to deposit today to reach this goal if you can earn 8% rather than 7% on your savings?

A.$12,273.13

B.$16,602.12

C.$17,414.41

D.$20,019.2

4.Your bank offers you a $25,000 line of credit with an interest rate of 2.25% per quarter. The loan agreement also requires that 4% of the unused portion of the credit line be deposited in a non-interest bearing account as a compensating balance. Your short-term investments are paying 0.40% per month. What is your effective annual interest rate on this arrangement if you do not borrow any money on this credit line during the year? Assume any funds borrowed or invested use compound interest.

A.4.67%

B.4.91%

C.5.23%

D.5.48%

5.Crosland, Inc. has sales of $512,000, costs of goods sold of $345,000, average accounts receivable of $56,400, and average accounts payable of $45,900. How long does it take for Crosland's credit customers to pay for their purchases?

A.27.12 days

B.40.21 days

C.48.56 days

D.59.67 days

6.A firm currently has a 43 day cash cycle. Assume that the firm changes its operations such that it increases its receivables period by 2 days, decreases its inventory period by 1 day and increases its payables period by 3 days. What will the length of the cash cycle be after these changes?

A.38 days

B.41 days

C.43 days

D.45 days

7.Weson, Inc. has sales of $462,000, costs of goods sold of $308,000 and average accounts receivable of $48,900. How long does it take its credit customers to pay for their purchases?

A.38.63 days

B.41.23 days

C.44.20 days

D.57.95 days

8.A firm has an inventory turnover rate of 16, a receivables turnover rate of 21 and a payables turnover rate of 11. How long is the operating cycle?

A.40.19 days

B.42.87 days

C.63.08 days

D.73.37 days

9.Randy's Meat Market has a 46-day collection period. The amount of cash that Randy collects each quarter is equal to:

A.46% of last quarter sales plus 54% of this quarter sales.

B.46 days of sales from last quarter plus 54 days of sales from this quarter.

C.51% of last quarter sales plus 49% of this quarter sales.

D.54% of last quarter sales plus 46% of this quarter sales.

10.On average, Stuff for Less is able to sell their inventory in 23 days. Stuff for Less takes 60 days on average to pay for their purchases. On the other hand, their average customer charges their purchase on a credit card whereby payment is received in 15 days. Given this information, what is the length of operating cycle?

A.38 days

B.45 days

C.68 days

D.75 days

13.I.R. Ruth, Inc. has an inventory turnover rate of 16.59, an accounts payable period of 51 days, and an accounts receivable period of 34 days. What is the length of the cash cycle?

A.-2 days

B.5 days

C.8 days

D.13 days

14.Natural Woods has a 60 day accounts payable period. The firm has expected sales of $3,200, $3,800, $4,600, and $4,800, respectively, by quarter for the next calendar year. The cost of goods sold for a quarter is equal to 60% of the next quarter sales. What is the amount of the projected cash disbursements for accounts payable for the third quarter of the next year? Assume that a year has 360 days.

A.$2,880

B.$3,280

C.$3,360

D.$2,800

15.Your firm sells $6,000 worth of goods in December, $4,700 worth in January, $5,100 in February, and $5,800 in March. Your cost is 65% of your selling price. You have a receivables period of 30 days and a payables period of 60 days. You buy your products one month prior to selling them. How much will you pay on your accounts payable in February?

A.$3,165

B.$3,315

C.$3,543

D.$3,055

16.ALPHA, Inc. sells all of its products on credit. Purchases are 60% of the sales for the following quarter. The firm uses a 365-day year and account averages where applicable in its computations.

The financial manager of the firm provides the following relevant information: