QUESTION 1
Indicate the effect of the following on the cash cycle: Accounts payable period goes up
No change
Decrease
Increase
QUESTION 2
Indicate the effect of the following on the operating cycle: Customers take longer to make the payment
Decrease
Increase
No change
QUESTION 3
Indicate the effect of the following on the operating cycle: Accounts payable goes up
Decrease
Increase
No change
QUESTION 4
Which one of the following is most indicative of a flexible short-term financial policy?
Relatively low level of accounts receivable
Relatively low level of inventory
Relatively high ratio of current assets to total assets
Relatively high ratio of short-term debt to total debt
Relatively low level of liquidity
QUESTION 5
ABC Corporation currently has an inventory turnover of 10.49, a payables turnover of 6.55, and a receivables turnover of 15.88. How many days are in the operating cycle? 19.82 days
Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
QUESTION 6
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. 49413.48
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 7
ABC Company writes 111 checks a day for an average amount of $431 each. These checks generally clear the bank in 5 days. In addition, the firm generally receives an average of $120,169 a day in checks that are deposited immediately. Deposited funds are available in 1 days. What is the firm's net float? 138737.20
Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 8
Identify a source of cash from below. Choose only one.
decrease in long-term debt
decrease in current liabilities
Increase in fixed assets
Decrease in accounts receivable
increase in inventory
QUESTION 9
Month Sales $
MonthSales $
Jan 12,253
July 24,470
Feb 39,606
Aug 46,950
Mar 46,950
Sep 12,253
Apr 24,470
Oct 46,950
May 12,253
Nov 39,606
June 39,606
Dec 24,470
Sales are collected as follows:
In the month of Sales: 40%
In the next month: 34%
After 2 months: 13%
Remainder is considered as bad debt and is not collected.
Calculate the cash collection for June. 23, 189.52
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 10
ABC Company has a cash cycle of 10.85 days, an operating cycle of 21.94 days, and an average collection period of 7 days. The company reported cost of goods sold of $299,787. What is the company's average balance in Accounts Payable? 9108.60
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box
QUESTION 11
ABC Corporation currently has an inventory turnover of 5.05, a payables turnover of 24.95, and a receivables turnover of 11.09. How many days are in the cash cycle? 90.56
Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
QUESTION 12
As of this morning, your firm had a ledger balance of $4,894 with no outstanding deposits or checks. Today, your firm deposited 5 checks in the amount of $234 each and wrote 6 checks in the amount of $958 each. What is the amount of the disbursement float as of the end of the day? 5748
Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 13
Identify which of the following will increase the operating cycle. Choose only one.
decrease in average collection period
Decrease in inventory turnover ratio
decrease in accounts payable turnover ratio
decrease in accounts payable period
decrease in days' sales in inventory
QUESTION 14
ABC Company has annual sales of $483,743 and cost of goods sold of $198,600. The average accounts receivable balance is $116,776. How many days on average does it take the firm to collect its accounts receivable? Assume 365 days. 88.11
Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
QUESTION 15
Compute the cash cycle based on the following information: 55
Average Collection Period = 60
Accounts Payable Period = 45
Average Age of Inventory = 42
QUESTION 16
As of this morning, your firm had a ledger balance of $4,641 with no outstanding deposits or checks. Today, your firm deposited 6 checks in the amount of $412 each and wrote a check in the amount of $999. What is the amount of the collection float as of the end of the day? 2472
Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 17
Month Sales $
Month Sales $
Jan 46,126
July 19,302
Feb 44,598
Aug 38,231
Mar 38,231
Sep 46,126
Apr 19,302
Oct 38,231
May 46,126
Nov 44,598
June 44,598
Dec 19,302
Sales are collected as follows:
In the month of Sales: 40%
In the next month: 27%
After 2 months: 5%
After 3 months: remainder is collected
Calculate the cash collection for November. 41172.55
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 18
ABC Company has annual sales of $400,000 and cost of goods sold of $335,709. The accounts payable period is 50.78 days. What is the average accounts payable balance? 56632.82
Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
QUESTION 19
Compute the Accounts Payable (A/P) period based on the following information:
Average A/P balance = $36,501
Annual Cost of Goods Sold = $177,052
Assume 365 days 75.25
Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
QUESTION 20
ABC Company has an average collection period of 32 days and factors all of its receivables immediately at a 1.1 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing? 28.18
Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.
QUESTION 21
On July 15th, you purchased $10,000 worth of goods. The terms of the sale were 1/9, net 39. What is the effective annual rate of interest for the credit period for this sale?
Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box
QUESTION 22
Month Sales $
Month Sales $
Jan 45,450
July 42,870
Feb 29,949
Aug 34,840
Mar 34,840
Sep 45,450
Apr 42,870
Oct 34,840
May 45,450
Nov 29,949
June 29,949
Dec 42,870
Sales are collected as follows:
In the month of Sales: 34%
In the next month: 21%
After 2 months: 10%
After 3 months: remainder is collected
Calculate the cash collection for December.
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
QUESTION 23
Which of the following is a Source of Cash? Choose only one.
Increase in current assets
Increase in fixed assets
Increase in long-term debt
decrease in current liabilities
decrease in equity
QUESTION 24
The terms of the sale were 2/9, net 56. What is the effective annual rate of interest?
Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.