1.Pancake Ltd uses 15,000 litres of maple syrup each year. The cost of holding its maple syrup inventory is $0.80 per litre per year. The cost of ordering the syrup is $120 per delivery. The firm uses maple syrup at a constant rate throughout the year. The economic order quantity for maple syrup is:

Select one:

a. 2,121 lites

b. 200 litres

c. 2,372 lites

d. 1,500 litres

2.Calculate the operating cash cycle the accounts payable settlement period is 39 days, theinventory turnover period is 75 days and the accounts receivable settlement period is 43 days.

Select one:

a. 71 days

b. 82 days

c. 79 days

d. 118 days

3.Which changes would increase a firm's net working capital, if all else remained constant?

Select one:

a. increase in accounts payable

b. decrease in inventories

c. decrease in cash

d. increase in accounts receivable

4.Because of uncertainty of demand, a firm may choose to hold an additional amount of inventory called:

Select one:

A. safety stock.

B. transit stock.

C. reorder stock.

D. economic order quantity stock.