QUESTION 6

Month	Sales $	Month	Sales $
Jan	25,207	July	20,404
Feb	25,480	Aug	27,884
Mar	27,884	Sep	25,207
Apr	20,404	Oct	27,884
May	25,207	Nov	25,480
June	25,480	Dec	20,404

Sales are collected as follows:

In the month of Sales: 41% In the next month: 24% After 2 months: 13% After 3 months: remainder is collected

Calculate the cash collection for November.

QUESTION 7

ABC Company has a cash cycle of 12.46 days, an operating cycle of 23.77 days, and an average collection period of 5 days. The company reported cost of goods sold of $275,723. What is the company's average balance in Accounts Payable?

QUESTION 15

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?

QUESTION 18

ABC Company has an average collection period of 39 days and factors all of its receivables immediately at a 1.4 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing?

QUESTION 20

ABC Corporation currently has an inventory turnover of 12.73, a payables turnover of 14.15, and a receivables turnover of 15.62. How many days are in the cash cycle?

QUESTION 21

Month	Sales $	Month	Sales $
Jan	47,086	July	41,322
Feb	38,324	Aug	17,482
Mar	17,482	Sep	47,086
Apr	41,322	Oct	17,482
May	47,086	Nov	38,324
June	38,324	Dec	41,322

The company has estimated expenses as follows: General and administrative expenses: $9,474 Material purchases are 68 percent of sales. Material purchases are paid in the month following the purchase. Interest payment per month: $4,317 Rent expenses per quarter starting March: $3,604

Calculate the cash outflows for June.