1. Tampa Manufacturing has an inventory turnover rate of 10, an accounts payable period of 65 days, and an accounts receivable period of 40 days. What is the length of the cash cycle?
8.35 days
11.50 days
14.20 days
10.08 days
12.96 days
2. Assume the inflation rate in the U.S. is 1.5 percent. The spot rate for a foreign currency is .92 while the 1-year forward rate is .94. What is the approximate rate of inflation in the foreign country?
3.67%
3.42%
3.21%
2.86%
2.61%