1. The average credit sales for Jiffy Co. is $375,000. Accounts receivables average balance is $68,000. Jiffy factors its receivables by discounting them 3%. What is the effective cost of factoring?
2. Bobs Hobby has annual average purchases of $138,000 and an ending accounts payable balance of $21,748. How long, on average, does it take Bobs to pay for its purchases?
3. Marcos Inc. wants to maintain a minimum cash balance of $20 million, which is what the company currently has on hand. The company currently has a receivables balance of $187 million and has developed the following sales and cash disbursement budgets in millions:

4. Q1 Q2 Q3 Q4

   Sales $315 $390 $475 $435

   Total cash disbursement $265 $340 $560 $375

   Cash Collections $385 $363 $445 $449

   Complete the following cash budget for the company.

   Q1 Q2 Q3 Q4

   Beginning receivables

   Sales

   Cash collections

   Ending receivables

   Total cash collections

   Total cash disbursements

   Net cash inflow

   Beginning cash balance

   Net cash inflow

   Ending cash balance

   Minimum cash balance

   Cumulative surplus (deficit)