Reference no: EM13798175

Indicate the effect of the following on the cash cycle: Accounts payable period goes up Decrease Increase No change 1 points QUESTION 2 Indicate the effect of the following on the operating cycle: Customers take longer to make the payment No change Increase Decrease 1 points QUESTION 3 On July 15th, you purchased $10,000 worth of goods. The terms of the sale were 1/6, 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. 1 points QUESTION 4 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? 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. 1 points QUESTION 5 ABC Company sells 3,668 chairs a year at an average price per chair of $140. The carrying cost per unit is $22.49. The company orders 395 chairs at a time and has a fixed order cost of $120.6 per order. The chairs are sold out before they are restocked. What are the total carrying costs? Enter your answer rounded off to two decimal points. Do not enter comma or $ in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box. 1 points QUESTION 6 As of this morning, your firm had a ledger balance of $3,532 with no outstanding deposits or checks. Today, your firm deposited 4 checks in the amount of $274 each and wrote a check in the amount of $701. What is the amount of the collection float as of the end of the day? 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. 1 points QUESTION 7 The terms of the sale were 1/9, net 45. 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. 1 points QUESTION 8 Compute the Accounts Payable (A/P) period based on the following information: Average A/P balance = $31,775 Annual Cost of Goods Sold = $197,306 Assume 365 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. 1 points QUESTION 9 ABC Company has annual sales of $468,016 and cost of goods sold of $198,600. The average accounts receivable balance is $83,039. How many days on average does it take the firm to collect its accounts receivable? Assume 365 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. 1 points QUESTION 10 Identify which of the following will increase the operating cycle. Choose only one. decrease in accounts payable turnover ratio decrease in accounts payable period Decrease in inventory turnover ratio decrease in days' sales in inventory decrease in average collection period 1 points QUESTION 11 ABC Company sells 3,755 chairs a year at an average price per chair of $191. The carrying cost per unit is $20.71. The company orders 543 chairs at a time and has a fixed order cost of $127 per order. The chairs are sold out before they are restocked. How many orders will company place if it follows the economic order quantity model? Enter your answer rounded off to two decimal points. Do not enter comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box. 1 points QUESTION 12 Month Sales $ Month Sales $ 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. 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. 1 points QUESTION 13 Identify a source of cash from below. Choose only one. Decrease in accounts receivable decrease in long-term debt increase in inventory decrease in current liabilities Increase in fixed assets 1 points QUESTION 14 As of this morning, your firm had a ledger balance of $4,843 with no outstanding deposits or checks. Today, your firm deposited 6 checks in the amount of $497 each and wrote 14 checks in the amount of $635. What is the amount of the disbursement float as of the end of the day? 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. 1 points QUESTION 15 ABC Company has annual sales of $400,000 and cost of goods sold of $153,422. The accounts payable period is 59.91 days. What is the average accounts payable balance? 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. 1 points QUESTION 16 ABC Company sells 3,287 chairs a year at an average price per chair of $181. The carrying cost per unit is $15.09. The company orders 500 chairs at a time and has a fixed order cost of $66 per order. The chairs are sold out before they are restocked. What is the economic order quantity? Enter your answer rounded off to two decimal points. Do not enter comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box. 1 points QUESTION 17 Month Sales $ Month Sales $ Jan 21,547 July 47,774 Feb 29,026 Aug 31,563 Mar 31,563 Sep 21,547 Apr 47,774 Oct 31,563 May 21,547 Nov 29,026 June 29,026 Dec 47,774 The company has estimated expenses as follows: General and administrative expenses: $7,333 Material purchases are 69 percent of sales. Material purchases are paid in the month following the purchase. Interest payment per month: $3,910 Rent expenses per quarter starting March: $8,728 Calculate the cash outflows for June. 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. 1 points QUESTION 18 Which one of the following is most indicative of a flexible short-term financial policy? Relatively high ratio of current assets to total assets Relatively low level of accounts receivable Relatively low level of inventory Relatively high ratio of short-term debt to total debt Relatively low level of liquidity 1 points QUESTION 19 ABC Corporation currently has an inventory turnover of 9.54, a payables turnover of 10.26, and a receivables turnover of 12.65. How many days are in the cash cycle? 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. 1 points QUESTION 20 ABC Company writes 119 checks a day for an average amount of $415 each. These checks generally clear the bank in 5 days. In addition, the firm generally receives an average of $129,653 a day in checks that are deposited immediately. Deposited funds are available in 1 days. What is the firm's net float? 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. 1 points QUESTION 21 ABC Company has a cash cycle of 13.67 days, an operating cycle of 18.75 days, and an average collection period of 5 days. The company reported cost of goods sold of $257,507. What is the company's average balance in Accounts Payable? 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 1 points QUESTION 22 Month Sales $ Month Sales $ Jan 30,690 July 23,509 Feb 17,674 Aug 11,294 Mar 11,294 Sep 30,690 Apr 23,509 Oct 11,294 May 30,690 Nov 17,674 June 17,674 Dec 23,509 Sales are collected as follows: In the month of Sales: 32% In the next month: 23% After 2 months: 7% After 3 months: remainder is collected Calculate the cash collection for November. 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. 1 points QUESTION 23 Month Sales $ Month Sales $ Jan 41,915 July 32,521 Feb 45,404 Aug 47,628 Mar 47,628 Sep 41,915 Apr 32,521 Oct 47,628 May 41,915 Nov 45,404 June 45,404 Dec 32,521 Sales are collected as follows: In the month of Sales: 24% In the next month: 29% After 2 months: 12% 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. 1 points QUESTION 24 Which of the following is a Source of Cash? Choose only one. Increase in long-term debt decrease in equity Increase in current assets Increase in fixed assets decrease in current liabilities 1 points QUESTION 25 ABC Company has an average collection period of 28 days and factors all of its receivables immediately at a 2.3 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. 1 points QUESTION 26 Compute the cash cycle based on the following information: Average Collection Period = 71 Accounts Payable Period = 26 Average Age of Inventory = 60 1 points QUESTION 27 ABC Company sells 4,903 chairs a year at an average price per chair of $128. The carrying cost per unit is $28.73. The company orders 420 chairs at a time and has a fixed order cost of $48 per order. The chairs are sold out before they are restocked. What are the total shortage costs? Enter your answer rounded off to two decimal points. Do not enter comma or $ in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.