QUESTION 1

1.

Month

Sales $

Month

Sales $

Jan

24,121

July

24,064

Feb

44,373

Aug

26,093

Mar

26,093

Sep

24,121

Apr

24,064

Oct

26,093

May

24,121

Nov

44,373

June

44,373

Dec

24,064

Sales are collected as follows:

In the month of Sales: 31%

In the next month: 33%

After 2 months: 11%

After 3 months: remainder is collected

Calculate the cash collection for November.

2.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.

3.

1 points

QUESTION 2

1.ABC Company has an average collection period of 28 days and factors all of its receivables immediately at a 1.3 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 3

1.ABC Company writes 383 checks a day for an average amount of $524 each. These checks generally clear the bank in 4 days. In addition, the firm generally receives an average of $153,520 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 4

1.Compute the cash cycle based on the following information:

Average Collection Period = 32

Accounts Payable Period = 44

Average Age of Inventory = 32

1 points

QUESTION 5

1.The terms of the sale were 4/11, net 41. 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 6

1.ABC Corporation currently has an inventory turnover of 5.72, a payables turnover of 15.24, and a receivables turnover of 19.17. 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 7

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

decrease in average collection period

Decrease in inventory turnover ratio

decrease in days' sales in inventory

decrease in accounts payable period

decrease in accounts payable turnover ratio

1 points

QUESTION 8

1.ABC Company has a cash cycle of 12.99 days, an operating cycle of 20.81 days, and an average collection period of 6 days. The company reported cost of goods sold of $243,729. 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 9

1.Which of the following is a Source of Cash? Choose only one.

decrease in equity

Increase in long-term debt

decrease in current liabilities

Increase in fixed assets

Increase in current assets

1 points

QUESTION 10

1.ABC Company has annual sales of $400,000 and cost of goods sold of $197,844. The accounts payable period is 30.28 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 11

1.

Month

Sales $

Month

Sales $

Jan

35,210

July

31,932

Feb

17,462

Aug

37,355

Mar

37,355

Sep

35,210

Apr

31,932

Oct

37,355

May

35,210

Nov

17,462

June

17,462

Dec

31,932

Sales are collected as follows:

In the month of Sales: 41%

In the next month: 29%

After 2 months: 5%

Remainder is considered as bad debt and is not collected.

Calculate the cash collection for June.

2.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 12

1.As of this morning, your firm had a ledger balance of $4,406 with no outstanding deposits or checks. Today, your firm deposited 5 checks in the amount of $134 each and wrote a check in the amount of $785. 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 13

1.ABC Corporation currently has an inventory turnover of 40.59, a payables turnover of 10.27, and a receivables turnover of 21.64. 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

1.OnJuly 15^th, you purchased $10,000 worth of goods. The terms of the sale were 1/6, net 39. 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 15

1.

Month

Sales $

Month

Sales $

Jan

34,219

July

26,724

Feb

13,312

Aug

45,037

Mar

45,037

Sep

34,219

Apr

26,724

Oct

45,037

May

34,219

Nov

13,312

June

13,312

Dec

26,724

The company has estimated expenses as follows:

General and administrative expenses: $3,814

Material purchases are 56 percent of sales. Material purchases are paid in the month following the purchase.

Interest payment per month: $3,586

Rent expenses per quarter starting March: $6,829

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 16

1.As of this morning, your firm had a ledger balance of $4,148 with no outstanding deposits or checks. Today, your firm deposited 8 checks in the amount of $236 each and wrote 3 checks in the amount of $849 each. 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 17

Month

Sales $

Month

Sales $

Jan

39,361

July

20,236

Feb

10,390

Aug

42,083

Mar

42,083

Sep

39,361

Apr

20,236

Oct

42,083

May

39,361

Nov

10,390

June

10,390

Dec

20,236

Sales are collected as follows:

In the month of Sales: 33%

In the next month: 22%

After 2 months: 9%

After 3 months: remainder is collected

Calculate the cash collection for December.

1.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 18

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

Average A/P balance = $31,775

Annual Cost of Goods Sold = $197,306

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 19

1.Identify a source of cash from below. Choose only one.

decrease in long-term debt

Decrease in accounts receivable

Increase in fixed assets

decrease in current liabilities

increase in inventory

1 points

QUESTION 20

1.Which one of the following is most indicative of a flexible short-term financial policy?

Relatively high ratio of short-term debt to total debt

Relatively low level of liquidity

Relatively low level of accounts receivable

Relatively high ratio of current assets to total assets

Relatively low level of inventory

1 points

QUESTION 21

1.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.

1 points

QUESTION 22

1.Indicate the effect of the following on the operating cycle: Customers take longer to make the payment

No change

Increase

Decrease

1 points

QUESTION 23

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

No change

Decrease

Increase

1 points

QUESTION 24

1.Indicate the effect of the following on the cash cycle: Accounts payable turnover goes up

No change

Increase

Decrease