ABC Company writes 330 checks a day for an average amount of $489 each. These checks generally clear the bank in 2 days. In addition, the firm generally receives an average of $176,042 a day in checks that are deposited immediately. Deposited funds are available in 1 days. What is the firm's net float? 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. 1 points QUESTION 2 ABC Company has a cash cycle of 12.62 days, an operating cycle of 19.02 days, and an average collection period of 4 days. The company reported cost of goods sold of $266,677. What is the company's average balance in Accounts Payable? 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 1 points QUESTION 3 Compute the Accounts Payable (A/P) period based on the following information: Average A/P balance = $50,659 Annual Cost of Goods Sold = $455,648 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. 1 points QUESTION 4 ABC Company sells 3,845 chairs a year at an average price per chair of $167. The carrying cost per unit is $37.98. The company orders 500 chairs at a time and has a fixed order cost of $64 per order. The chairs are sold out before they are restocked. What is the economic order quantity? Enter your answer rounded off to two decimal points. Do not enter comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box. 1 points QUESTION 5 Month Sales $ Month Sales $ Jan 13,720 July 27,515 Feb 49,438 Aug 42,513 Mar 42,513 Sep 13,720 Apr 27,515 Oct 42,513 May 13,720 Nov 49,438 June 49,438 Dec 27,515 Sales are collected as follows: In the month of Sales: 34% In the next month: 22% After 2 months: 13% 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. 1 points QUESTION 6 As of this morning, your firm had a ledger balance of $4,699 with no outstanding deposits or checks. Today, your firm deposited 9 checks in the amount of $483 each and wrote a check in the amount of $796. 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. 1 points QUESTION 7 As of this morning, your firm had a ledger balance of $3,074 with no outstanding deposits or checks. Today, your firm deposited 7 checks in the amount of $442 each and wrote 4 checks in the amount of $981. What is the amount of the disbursement 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. 1 points QUESTION 8 On July 15th, you purchased $10,000 worth of goods. The terms of the sale were 1/6, net 38. What is the effective annual rate of interest for the credit period for this sale? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. 1 points QUESTION 9 Month Sales $ Month Sales $ Jan 44,202 July 20,562 Feb 19,221 Aug 25,659 Mar 25,659 Sep 44,202 Apr 20,562 Oct 25,659 May 44,202 Nov 19,221 June 19,221 Dec 20,562 Sales are collected as follows: In the month of Sales: 40% In the next month: 33% After 2 months: 9% After 3 months: remainder is collected Calculate the cash collection for December. 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. 1 points QUESTION 10 ABC Company sells 4,217 chairs a year at an average price per chair of $167. The carrying cost per unit is $55.48. The company orders 348 chairs at a time and has a fixed order cost of $161 per order. The chairs are sold out before they are restocked. How many orders will company place if it follows the economic order quantity model? Enter your answer rounded off to two decimal points. Do not enter comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box. 1 points QUESTION 11 The terms of the sale were 3/8, net 43. 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. 1 points QUESTION 12 Month Sales $ Month Sales $ Jan 15,046 July 30,778 Feb 32,975 Aug 22,230 Mar 22,230 Sep 15,046 Apr 30,778 Oct 22,230 May 15,046 Nov 32,975 June 32,975 Dec 30,778 Sales are collected as follows: In the month of Sales: 32% In the next month: 27% After 2 months: 5% Remainder is considered as bad debt and is not collected. Calculate the cash collection 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. 1 points QUESTION 13 ABC Corporation currently has an inventory turnover of 27.38, a payables turnover of 13.4, and a receivables turnover of 13.94. 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. 1 points QUESTION 14 ABC Company has an average collection period of 29 days and factors all of its receivables immediately at a 1.5 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. 1 points QUESTION 15 ABC Company sells 2,014 chairs a year at an average price per chair of $126. The carrying cost per unit is $39.72. The company orders 365 chairs at a time and has a fixed order cost of $82.8 per order. The chairs are sold out before they are restocked. What are the total shortage costs? Enter your answer rounded off to two decimal points. Do not enter comma or $ in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box. 1 points QUESTION 16 Which of the following is a Source of Cash? Choose only one. decrease in current liabilities decrease in equity Increase in long-term debt Increase in current assets Increase in fixed assets 1 points QUESTION 17 Identify a source of cash from below. Choose only one. decrease in long-term debt increase in inventory decrease in current liabilities Decrease in accounts receivable Increase in fixed assets 1 points QUESTION 18 Compute the cash cycle based on the following information: Average Collection Period = 51 Accounts Payable Period = 46 Average Age of Inventory = 41 1 points QUESTION 19 Identify which of the following will increase the operating cycle. Choose only one. decrease in accounts payable period Decrease in inventory turnover ratio decrease in days' sales in inventory decrease in average collection period decrease in accounts payable turnover ratio 1 points QUESTION 20 ABC Company has annual sales of $413,375 and cost of goods sold of $198,600. The average accounts receivable balance is $52,359. 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. 1 points QUESTION 21 Month Sales $ Month Sales $ Jan 18,254 July 20,698 Feb 47,909 Aug 44,723 Mar 44,723 Sep 18,254 Apr 20,698 Oct 44,723 May 18,254 Nov 47,909 June 47,909 Dec 20,698 The company has estimated expenses as follows: General and administrative expenses: $9,293 Material purchases are 74 percent of sales. Material purchases are paid in the month following the purchase. Interest payment per month: $3,596 Rent expenses per quarter starting March: $6,525 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. 1 points QUESTION 22 ABC Company has annual sales of $400,000 and cost of goods sold of $335,709. The accounts payable period is 50.78 days. What is the average accounts payable balance? 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. 1 points QUESTION 23 Which one of the following is most indicative of a flexible short-term financial policy? Relatively low level of inventory Relatively high ratio of current assets to total assets Relatively high ratio of short-term debt to total debt Relatively low level of accounts receivable Relatively low level of liquidity 1 points QUESTION 24 ABC Company sells 2,587 chairs a year at an average price per chair of $153. The carrying cost per unit is $18.42. The company orders 380 chairs at a time and has a fixed order cost of $109.7 per order. The chairs are sold out before they are restocked. What are the total carrying costs? Enter your answer rounded off to two decimal points. Do not enter comma or $ in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box. 1 points QUESTION 25 ABC Corporation currently has an inventory turnover of 9.54, a payables turnover of 10.26, and a receivables turnover of 12.65. How many days are in the cash 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. 1 points QUESTION 26 Indicate the effect of the following on the cash cycle: Accounts payable period goes up Increase Decrease No change 1 points QUESTION 27 Indicate the effect of the following on the cash cycle: Accounts payable turnover goes up No change Increase Decrease