Which one of the following equals the operating cycle? O A. cash cycle plus accounts receivable period B. average age of inventory plus average collection period Oc inventory period plus the accounts payable period O D. accounts payable period minus the cash cycle QUESTION 6 Bahrain Duty Free Shop Complex B.S.C. (Bahrain Bourse, #DUTYF) expects the following sales and material payments for the period January till May of the coming year (all numbers are in thousands Sales Material Payments BD 12.000 BD 14,000 January February 30.000 21.000 March 46.000 19.100 April 22.000 22.400 May 18.000 14,000 The company notes that historically 30 of sales are for cash, 40% are collected one month after the sale 30% are collected in the second month after the sale. Material payments are paid in the same month of incurrence Labor expenses are of the months sales Rent payments are D 1.200 per month Capital investment of B0 25000 expected in May. The firm's ending cash balance in february was B 2000 and its minimum required cash balance is BD 2.500. Compute UTP Cath Recept 2 marks) Cath Payment (2 marks and Net cash How mark) for March April and May The firm's need for borrowing or its ability to pay its loans can be predicted by: O A. Income statement O B. Cash budget OC Balance sheet O D. Ratio analysis Which of the following best describes the availability float? O A how long it takes the firm to process the check and deposit it in the bank O B. how long it takes before the bank gives the firm credit for the funds O how long it takes before payments to suppliers actually result in a cash outflow for the firm O D. how long it takes for a firm to be able to use funds after a customer has paid for its goods QUESTION 6 Bahrain Duty Free Shop Complex B.S.C. (Bahrain Bourse, #DUTYF) expects the following sales and material payments for the period January till May of the coming year (all numbers are in thousands Sales Material Payments BD 14,000 BD 10.000 January February March 30,000 21.000 16.000 19.100 April 22.400 22.000 May 18.000 14,000 The company notes that historically 30% of sales are for cash, 40% are collected one month after the sale 30% are collected in the second month after the Material payments are paid in the same month of incurrence Labor expenses are of the month's sales. Rent payments are D 1.200 per month. Capital investment of 0 25000 expected in May. The firm's ending cash balance in February was B 2000 and its minimum required cash balance is BD 2.500. Compute UTP Cath Recepti iz marks) Cash Payments (2 marks and Net cas how (1 mark) for March April and May The firm's need for borrowing or its ability to pay its loans can be predicted by: O A. Income statement O B. Cash budget OC Balance sheet O D. Ratio analysis Which one of the following equals the operating cycle? O A. cash cycle plus accounts receivable period B. average age of inventory plus average collection period Oc inventory period plus the accounts payable period O D. accounts payable period minus the cash cycle
