foundation of financial management 27 to 30 question

correct order for these four steps? A. 1,2,3,4 B. 4,3,2,1 C. 2, 1, 3,4 D. 3,2,1,4 27. In general, the larger the portion of a firm's sales that are on credit, the: A. lower will be the firm's need to borrow. B. higher will be the firm's need to borrow. C. more rapidly credit sales will be paid off. D. more the firm can buy raw materials on credit. 28. If projected net cash flow for November is (\$10,000), beginning cash balance is $4,000; minimam eash balance is $3,000; beginning loan balance is $8,000, what will be the cumulative loan balance at the end of Novernber? A. $14,000 B. $5,000 C. $17,000 D. 522,000 29. The Amber Magic Shoppe has forecast its ales revenues and purchases for the last 5 months of 209 to be as follows: 30. Follies Bookstore, the only bookstore close to campus, had net income in 205 of $90,000. Here are some of the financial ratios from the annual report. Using these ratios, calculate the following for Follies Bookstore: A) Sales B) Total assets C) Total asset turnover D) Total debt E) Shareholders' equity F) Refurn on equity 65% of sales are on credit. On the basis of past experience, 50% of the accounts receivable are collected the month after the sale and the remainder are collected 2 months after the sale. Purchases are paid 30 days after they are incurred. The firm had a cash balance of $5,000 as of September 30th, and its minimum required cash balance is $4,000. It had no beginning loan balance. Prepare a cash budget for Oetober, November and December