the following out by showing working outs 21. Which of the following statements is CORRECT a.If a firm has a relatively aggressive current asset financing policy vis--vis other firms in its industry, then its current ratio will probably be relatively high. b.One cannot tell if a firm has a conservative, aggressive, or moderate current asset financing policy without an examination of its cash budget. c.If a company receives trade credit under terms of 2/10, net 30, this implies that the company has 10 days of free trade credit. d.Accruals are an expensive but commonly used way to finance working capital. e.A conservative financing policy is one where the firm finances part of its fixed assets with short-term capital and all of its net working capital with short-term funds. 22.High Company is a no-growth firm. Its sales fluctuate seasonally, causing total assets to vary from $320,000 to $410,000, but fixed assets remain constant at $260,000. If the firm follows a maturity matching (or moderate) working capital financing policy, what is the most likely total of long-term debt plus equity capital? a.$288,800 b.$260,642 c.$274,360 d.$320,000 e.$304,000 23. Cass & Company has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 50 days Receivables collection period = 17 days Payables deferral period = 25 days Select one: a.34 days b.31 days c.42 days d.46 days e.38 days 24. Romano Inc. has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 38 days Receivables collection period = 19 days Payables deferral period = 20 days Select one: a.49 days b.37 days c.41 days d.33 days e.45 days 25. Whittington Inc. has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 41 days Receivables collection period = 31 days Payables deferral period = 38 days Select one: a.45 days b.34 days c.37 days d.41 days e.31 days 26. Singal Inc. is preparing its cash budget. It expects to have sales of $30,000 in January, $35,000 in February, and $35,000 in March. If 20% of sales are for cash, 50% of the credit sales are paid in the month after the sale, and another 50% of the credit sales paid 2 months after the sale, what are the expected cash receipts for March? Select one: a.$24,057 b.$29,700 c.$33,000 d.$36,300 e.$26,730 27. Dyl Pickle Inc. had credit sales of $3,500,000 last year and its days sales outstanding was DSO = 35 days. What was its average receivables balance, based on a 365-day year? Select one: a.$407,944 b.$388,518 c.$335,616 d.$352,397 e.$370,017 28. Data on Shick Inc. for 2012 are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks' average. If this were done, by how much would receivables decline? Use a 365-day year. Sales $110,000 Accounts receivable $16,000 Days sales outstanding (DSO) 53.09 Benchmarks' days sales outstanding (DSO) 20.00 Select one: a.$ 8,975 b.$10,970 c.$ 8,078 d.$ 9,973 e.$12,067 29.Your firm's cost of goods sold (COGS) average $2,000,000 per month, and it keeps inventory equal to 50% of its monthly COGS on hand at all times. Using a 365-day year, what is its inventory conversion period? Select one: a.16.7 days b.15 days c.14.4 days d.11.7 days e.13 days 30. PNG Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40-days credit on its purchases from suppliers.Estimate the average length of the firm's short-term operating cycle. Select one: a.90 days b.88 days c.87 days d.100 days e.95 days