Expert answer:Need help with Financial Management Quiz 5
Answer & Explanation:11232015quiz.docx
11232015quiz.docx
Unformatted Attachment Preview
QUESTION 1
ABC Company has annual sales of $449,521 and cost of goods sold of $198,600. The average
accounts receivable balance is $106,932. 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.
QUESTION 2
Identify which of the following will increase the operating cycle. Choose only one.
•
•
•
•
•
decrease in average collection period
decrease in accounts payable period
Decrease in inventory turnover ratio
decrease in accounts payable turnover ratio
decrease in days’ sales in inventory
QUESTION 3
Month Sales $
Month Sales $
Jan
13,341 July
31,082
Feb
28,624 Aug
13,521
Mar
13,521 Sep
13,341
Apr
31,082 Oct
13,521
May
13,341 Nov
28,624
June
28,624 Dec
31,082
The company has estimated expenses as follows:
General and administrative expenses: $2,412
Material purchases are 36 percent of sales. Material purchases are paid in the month following the purchase.
Interest payment per month: $3,275
Rent expenses per quarter starting March: $4,859
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.
QUESTION 4
ABC Company has a cash cycle of 10.11 days, an operating cycle of 22.16 days, and an average
collection period of 7 days. The company reported cost of goods sold of $273,071. 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
QUESTION 5
Identify a source of cash from below. Choose only one.
•
•
•
•
•
increase in inventory
decrease in long-term debt
decrease in current liabilities
Increase in fixed assets
Decrease in accounts receivable
QUESTION 6
ABC Company writes 331 checks a day for an average amount of $591 each. These checks
generally clear the bank in 3 days. In addition, the firm generally receives an average of
$170,481 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.
QUESTION 7
As of this morning, your firm had a ledger balance of $4,911 with no outstanding deposits or
checks. Today, your firm deposited 4 checks in the amount of $381 each and wrote a check in
the amount of $817. 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.
QUESTION 8
ABC Company has an average collection period of 34 days and factors all of its receivables
immediately at a 3.1 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.
QUESTION 9
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 inventory
Relatively low level of liquidity
Relatively high ratio of short-term debt to total debt
Relatively low level of accounts receivable
QUESTION 10
Month Sales $
Month Sales $
Jan
15,046 July
30,778
Feb
32,975 Aug
22,230
Mar
22,230 Sep
15,046
Apr
30,778 Oct
22,230
May
15,046 Nov
32,975
June
32,975 Dec
30,778
Sales are collected as follows:
In the month of Sales: 32%
In the next month: 27%
After 2 months: 5%
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.
QUESTION 11
The terms of the sale were 3/8, net 43. 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.
QUESTION 12
Month Sales $
Month Sales $
Jan
42,175 July
14,603
Feb
19,251 Aug
34,663
Mar
34,663 Sep
42,175
Apr
14,603 Oct
34,663
May
42,175 Nov
19,251
June
19,251 Dec
14,603
Sales are collected as follows:
In the month of Sales: 25%
In the next month: 34%
After 2 months: 11%
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 13
ABC Corporation currently has an inventory turnover of 19.73, a payables turnover of 8.84, and
a receivables turnover of 9.12. 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.
QUESTION 14
As of this morning, your firm had a ledger balance of $4,294 with no outstanding deposits or
checks. Today, your firm deposited 6 checks in the amount of $146 each and wrote 11 checks in
the amount of $880 each. 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.
QUESTION 15
Compute the cash cycle based on the following information:
Average Collection Period = 34
Accounts Payable Period = 28
Average Age of Inventory = 32
QUESTION 16
ABC Corporation currently has an inventory turnover of 23.46, a payables turnover of 16.61, and
a receivables turnover of 17.87. 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.
QUESTION 17
Compute the Accounts Payable (A/P) period based on the following information:
Average A/P balance = $53,204
Annual Cost of Goods Sold = $218,177
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.
QUESTION 18
ABC Company has annual sales of $400,000 and cost of goods sold of $145,063. The accounts
payable period is 55.47 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.
QUESTION 19
On July 15th, you purchased $10,000 worth of goods. The terms of the sale were 2/7, net 46.
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 20
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.
QUESTION 21
Which of the following is a Source of Cash? Choose only one.
•
•
•
•
•
Increase in current assets
decrease in equity
Increase in long-term debt
decrease in current liabilities
Increase in fixed assets
QUESTION 22
Indicate the effect of the following on the cash cycle: Accounts payable turnover goes up
•
•
•
Decrease
No change
Increase
QUESTION 23
Indicate the effect of the following on the operating cycle: Customers take longer to make the
payment
•
•
•
Decrease
Increase
No change
QUESTION 24
Indicate the effect of the following on the cash cycle: Accounts payable period goes up
•
•
•
Increase
No change
Decrease
…
Purchase answer to see full
attachment
How it works
- Paste your instructions in the instructions box. You can also attach an instructions file
- Select the writer category, deadline, education level and review the instructions
- Make a payment for the order to be assignment to a writer
- Download the paper after the writer uploads it
Will the writer plagiarize my essay?
You will get a plagiarism-free paper and you can get an originality report upon request.
Is this service safe?
All the personal information is confidential and we have 100% safe payment methods. We also guarantee good grades