Q&A Hero

Q: The Blue Star generally receives only three checks a month with amounts of $14,809, $16,211, and $14,750. These checks all have a collection delay of 1.5 days. Given this information, what is the amount of the average daily float? Assume every month has 30 days. A) $1,971 B) $2,289 C) $2,351 D) $1,526 E) $2,833

Q: Hoyes Lumber generally receives three checks a month in the amounts of $654, $987, and $1,310. The $987 check has a two-day collection delay while the others have a one-day delay. Given this information, what is the amount of the average daily float? Assume each month has 30 days. A) $131 B) $143 C) $147 D) $128 E) $122

Q: Southern Meals generally receives four checks a month. One of the checks is for $569 and has a collection delay of three days. The others amounts are $1,318, $907, and $113 and have a one-day delay. Given this information, what is the amount of the average daily float? Assume each month has 30 days. A) $135 B) $106 C) $94 D) $148 E) $113

Q: Lasko's Mart has an available balance of $2,315. A deposit of $789 was made this morning and is included in the bank's balance. There are three checks outstanding with a value of $289 each. What is the net float? A) $867 B) $78 C) $789 D) −$867 E) −$78

Q: When Chris balanced her business check book, she had an adjusted bank balance of $8,911. She had three outstanding deposits worth $349 each and seven checks outstanding with a total value of $948. What is the amount of the collection float on this account? A) $1,090 B) $1,047 C) $99 D) $806 E) $948

Q: On average, LB Inc. receives 138 payments each day with an average value of $42 each. These payments clear the bank in an average of 1.3 days. In addition, it disburses 2.2 checks a day with an average amount of $2,250. These checks clear the bank in two days. What is the average amount of the collection float? A) $18,473 B) $3,401 C) $7,535 D) $41,965 E) $49,500

Q: On an average day, Plastics Enterprises writes 23 checks with an average amount of $842. These checks clear the bank in an average of three days. What is the average amount of the disbursement float? A) $19,366 B) $2,526 C) $24,654 D) $58,098 E) $73,962

Q: The Hobby Shop has a checking account with an available balance of $617 and a check book balance of $702. There are $238 in uncollected deposits. What is the amount of the disbursement float on this account? A) $379 B) $323 C) $153 D) $196 E) $1,081

Q: As it applies to the BAT model, opportunity costs are defined as: A) the borrowing costs incurred. B) interest foregone on cash held. C) the cash needed for transaction purposes. D) costs incurred to replenish a cash account. E) the costs incurred when securities are sold.

Q: The Snow Hut has analyzed the carrying and shortage costs associated with its cash holdings and determined they should ideally maintain a cash balance of $5,200. This $5,200 represents which one of the following? A) Target cash balance B) Concentration balance C) Available balance D) Selected cash amount E) Compensating balance

Q: Which of the following statements is correct? A) There is a greater likelihood of needing an unexpected loan when cash flows are relatively constant over time. B) The cost of borrowing affects the target cash balance. C) Management's desire to maintain a low cash balance has no effect on the borrowing needs of a firm. D) The target cash balance increases as the interest rate rises. E) The target cash balance decreases as the order costs increase.

Q: The MillerOrr model: A) recommends selling securities in an amount equal to (U* − C) when the cash balance reaches L. B) requires that marketable securities be sold whenever the cash balance falls below the target level. C) bases the optimal level of cash solely on the opportunity costs of holding cash. D) supports the argument that the target cash balance declines as order costs increase. E) advocates investing an amount described as (U* C*) in marketable securities when the cash balance reaches U*.

Q: The MillerOrr model assumes that: A) the cash balance is depleted at regular intervals. B) all cash flows are known with certainty. C) the average change in the daily cash flows is positive. D) management will set both the lower and the upper desired levels of cash. E) the cash balance fluctuates in a random manner.

Q: The BAT model: A) maximizes the benefits of leverage. B) assumes net cash outflows are consistent over time. C) eliminates all daily cash surpluses. D) analyzes the cash balance given fluctuating cash outflows. E) maximizes the opportunity costs of holding cash.

Q: Which of the following variables are included in the BAT model? A) Fixed costs, upper cash limit, target cash limit B) Total transaction need, upper limit, and lower limit C) Target cash limit, upper limit, and lower limit D) Rate of return on market securities, fixed costs, and total transaction need E) Target cash limit, total transaction need, rate of return on market securities

Q: The BAT model: A) computes the fixed costs of securities trading based on the current U.S. Treasury bill rate. B) accounts for daily fluctuations in cash outflows. C) assumes cash is replenished when the cash level falls to its average balance. D) ignores the opportunity costs of holding cash. E) can be used to determine the target cash balance for a firm.

Q: Which of the following costs related to holding cash are minimized when the level of cash held is optimized? A) Opportunity costs B) Trading costs C) Total costs D) Both trading and opportunity costs E) None of the above

Q: Which one of these is a characteristic of money market preferred stock? A) A floating dividend B) No dividend payments C) Totally tax-exempt interest D) More price volatility than ordinary preferred E) Interest rate reset daily

Q: A repurchase agreement generally has a maximum life of: A) one day. B) a few days. C) one month. D) one to three months. E) three to six months.

Q: Brown Trucking is buying a U.S. Treasury bill today with the understanding that the seller will buy it back tomorrow at a slightly higher price. This investment is known as a: A) commercial paper transaction. B) repurchase agreement. C) private certificate of deposit. D) revenue anticipation note. E) bill anticipation note.

Q: A jumbo CD: A) is issued by the federal government. B) generally matures between two and five years. C) is a loan of $100,000 or more to a municipality. D) is a loan of $1 million or more on a short-term basis. E) is a short-term loan of $100,000 or more to a commercial bank.

Q: Money market securities generally have which of the following characteristics? A) Short maturity, low risk, low liquidity B) Low default risk, low liquidity, low return C) High return, high liquidity, low risk D) High liquidity, low risk, low return E) Long maturity, low risk, high return

Q: Money market securities: A) are highly marketable. B) pay interest that is exempt from federal taxation. C) generally mature in 6 to 18 months. D) tend to have a high level of default risk. E) are issued only by governmental and banking organizations.

Q: Which one of the following statements is correct? A) Money market accounts are low-risk, high-return investments. B) The rate of return earned on short-term securities tends to exceed that earned on long-term securities. C) U.S. Treasury bills are well suited for short-term investments. D) The income earned on U.S. Treasury bills is exempt from all taxation. E) Short-term investments tend to have high levels of default risk.

Q: Which two of the following are key reasons why companies temporarily accumulate large cash surpluses? A) Dividend payments and fixed expenses B) Fixed asset purchases and payroll C) Short-term investments and daily operations D) Large asset purchases and payments to creditors E) Large planned expenditures and cyclical activities

Q: Which one of the following statements is correct? A) Two primary reasons why a company holds cash are seasonal fluctuations and short-term investments. B) Banks are prohibited from investing cash surpluses on behalf of their customers on a short- term basis. C) Short-term securities tend to have a high degree of interest rate risk. D) The money market refers to securities that mature in one year or less. E) Corporations are not permitted to invest in money market mutual funds but can invest in bank money market accounts.

Q: Which one of the following statements is correct concerning zero-balance accounts? A) Each zero-balance account is offset by a compensating balance account. B) Zero-balance accounts are used for depositing incoming funds. C) A master account must be used in conjunction with a zero-balance account. D) Zero-balance accounts are used solely in conjunction with a lockbox system. E) Zero-balance accounts are still required to maintain a minimal balance.

Q: An account into which a company transfers funds in an amount sufficient to just cover the daily demands for payment is called a ________ account. A) lockbox B) clean-up C) compensating balance D) revolving E) controlled disbursement

Q: An account into which funds are deposited only in an amount equal to the value of the checks presented for payment that day is called a ________ account. A) lockbox B) concentration C) zero-balance D) compensating balance E) revolving

Q: A zero-balance account: A) is used to cover the compensating balance requirement of a line of credit agreement. B) is only used to deposit funds received at local lockboxes. C) is funded on an as-needed basis only. D) is limited to handling payroll disbursements. E) requires a compensating balance.

Q: Which one of the following statements is correct concerning a cash management system that employs both lockboxes and a concentration bank account? A) All customer payments must be submitted to a lockbox. B) The party that collects the checks from the lockbox is responsible for recording the payments on the customer's accounts. C) Payments received in a lockbox are transferred immediately to the concentration account. D) A higher dollar return may be earned on short-term investments due to the cash management system. E) The concentration account must be zeroed out on a daily basis.

Q: The purpose of a cash concentration account is to: A) decrease collection float. B) decrease disbursement float. C) consolidate funds. D) replace a lockbox system. E) cover compensating balance requirements.

Q: A cash concentration account: A) is frequently used as a source of funds for short-term investments. B) cannot be used to cover a compensating balance requirement. C) can only be used to transfer funds into zero-balance accounts. D) is generally the only bank account needed to efficiently manage cash collections. E) is another name for a controlled disbursement account.

Q: Which one of the following statements is correct? A) Funds received via automated clearing house transfers are available that day. B) A depository transfer check is the most costly means of transferring funds into a cash concentration account. C) The means selected to transfer funds into a concentration account depend upon the bank used for the concentration account. D) Concentration accounts are used to transfer funds to lockbox locations as needed. E) The fastest means of transferring funds into a concentration account is a wire transfer.

Q: Cash concentration accounts: A) tend to increase the funds available for short-term investing. B) tend to decrease the efficiency of a cash management system. C) that utilize wire transfers rather than automated clearing house transfers are less expensive to maintain. D) directly receive all customer payments. E) are all zero-balance accounts.

Q: Lockboxes: A) should be geographically located close to primary customers. B) should be located in remote locations to increase the net disbursement float. C) offer no additional benefit now that the Check Clearing Act for the 21st Century has been enacted. D) tend to be negative net present value projects when they involve a large number of sizable transactions. E) tend to also be used as concentration accounts.

Q: A lockbox system: A) entails the use of a bank that is centrally located to collect payments on a nationwide basis. B) is designed to deposit payments prior to recording those payments to the customers' accounts. C) is used to reduce disbursement float. D) is efficient regardless of the locations selected for lockbox destinations. E) automatically records payments to customers' accounts as soon as the payments are received at the lockbox location.

Q: Which one of the following collection times is correctly described? A) The processing delay starts when a bill is mailed and ends when the payment is received. B) Mailing time begins when a bill is mailed and ends when the payment is received. C) Collection time begins when a bill is mailed and ends when the cash payment is available for spending. D) Availability delay begins when a payment is deposited and ends when the cash from that payment is available for spending. E) Processing delay begins when a bill is mailed and ends when the payment of that bill is deposited into the bank.

Q: Which one of the following is the least likely to reduce a company's total collection time? A) Assigning additional staff in the morning to process incoming payments B) Establishing preauthorized payments from customers C) Opening a post office box so mail can be received earlier in the morning D) Providing a discount for customers who pay electronically E) Depositing funds only at day's end

Q: The Research Center has branch operations in three states. Each branch deals with a local bank. However, all excess funds in these branch bank accounts are transferred on a daily basis to the company's primary bank located near the home office. This routine of transferring cash to the primary bank on a regular basis is referred to as: A) cash concentration. B) strategic cash disbursement. C) transfer flotation. D) payables management. E) float management.

Q: A lockbox is a: A) special safe used for overnight storage of any cash or undeposited checks. B) special safe used that can only be opened at pre-specified times of the day. C) box located in a bank's vault that is rented and used to hold unprocessed checks. D) special post office box which can only be opened by pre-specified postal inspectors for direct delivery to the addressee. E) post office box strategically located so that a company's receivables can be collected faster.

Q: Which one of the following will increase collection time? A) Offering cash discounts for early payment B) Billing customers electronically rather than by mail C) Reducing the processing delay by one day D) Accepting debit cards but not checks as payment for a sale E) Requiring all nationwide payments be mailed to the home office rather than to lockboxes

Q: Check kiting, or systematically overdrawing accounts, is: A) is used by most companies as an ethical means of handling cash reserves. B) the process of withdrawing all funds from a bank account as soon as the funds become available. C) the central core of a modern cash management system. D) is unethical and has mostly been eliminated. E) increasingly popular due to recent banking law changes.

Q: Which one of these statements is correct? A) Mailing time affects both collections and disbursements float. B) A positive net float indicates that collection float exceeds disbursements float. C) A zero net float is preferred by companies over a positive net float. D) Net float is equal to collection float minus disbursement float. E) Mailing time is a component of disbursement float.

Q: Which one of the following enabled checks to be paid electronically using an electronic image? A) Check Clearing Act for the 21st Century B) Zero-balance Account Act C) Miller-Orr Act D) E.F. Hutton case E) Electronic Data Interchange Act of 2013

Q: Financial electronic data interchange (FEDI): A) electronically processes invoices but not fund transfers. B) eliminates the need for lockboxes. C) was replaced by the Check Clearing Act for the 21st Century. D) eliminates zero-balance accounts. E) reduces float.

Q: At the beginning of the year, BJ's had an outstanding short-term loan of $527. The interest charges for the year were $31 and the annual net cash flow was $211, prior to any payment of principal or interest on the loan. What is the anticipated loan balance at year-end? A) $451 B) $347 C) $558 D) $769 E) $693

Q: Cement Works has a beginning cash balance for the quarter of $1,211. The company requires a minimum cash balance of $1,200 and uses a loan account to maintain that balance. If funds have been borrowed, then they are repaid as soon as excess funds are available. Currently, the outstanding loan balance is $1,318. How much will be borrowed or repaid this quarter if the quarterly receipts are $4,209 and the quarterly disbursements are $3,807. A) Borrow $416 B) Borrow $402 C) Borrow $413 D) Repay $413 E) Repay $402

Q: Craft Shack has a beginning cash balance for the quarter of $1,213. The store has a policy of maintaining a minimum cash balance of $1,000 and is willing to borrow funds as needed to maintain that balance. Currently, the firm has a loan balance of $410. How much will the store borrow or repay if the net cash flow for the quarter is −$260? A) Neither borrow nor repay B) Repay $47 C) Repay $26 D) Borrow $47 E) Borrow $20

Q: The Corner Store factors all of its receivables immediately at a discount rate of 1.1 percent. The average collection period is 37.4 days and default is unlikely. What is the effective cost of borrowing? A) 10.24 percent B) 13.97 percent C) 15.82 percent D) 11.40 percent E) 12.58 percent

Q: Marci's has an average collection period of 34 days. Current practice is to factor all receivables immediately at a discount rate of 1.8 percent. Assume that default is extremely unlikely. What is the effective cost of borrowing? A) 18.79 percent B) 16.20 percent C) 17.78 percent D) 20.97 percent E) 21.53 percent

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Q: New Town Bank offers you a line of credit of $50,000 with an interest rate of 2.1 percent per quarter. The loan agreement also requires that 2.5 percent of the unused portion of the credit line be deposited in a non-interest-bearing account as a compensating balance. Short-term investments are currently paying .68 percent per quarter. What is the effective annual interest rate on the line of credit if you borrow the entire amount for one year? Assume any funds borrowed or invested use compound interest. A) 8.40 percent B) 8.89 percent C) 8.67 percent D) 8.51 percent E) 8.62 percent

Q: Your bank offers you a line of credit of $35,000 with an interest rate of 1.95 percent per quarter. The loan agreement also requires that 2 percent of the unused portion of the credit line be deposited in a non-interest-bearing account as a compensating balance. Your short-term investments are paying .17 percent per month. What is your effective annual interest rate on this arrangement if you do not borrow any money during the year? Assume any funds borrowed or invested use compound interest. A) 8.19 percent B) 2.06 percent C) 2.18 percent D) 8.03 percent E) 8.11 percent

Q: The Sports Store has a $230,000 line of credit that requires 1.5 percent of the unused portion of the credit line be deposited in a non-interest-bearing account as a compensating balance. The interest rate on the borrowed funds is 2.05 percent per quarter. The Sports Store's short-term investments are paying 1.5 percent per quarter. What is the effective annual interest rate on the line of credit if the entire credit line is borrowed for one year? Assume any funds borrowed or invested use compound interest. A) 8.46 percent B) 8.20 percent C) 8.61 percent D) 8.68 percent E) 8.54 percent

Q: Foods Galore has a line of credit of $325,000 with an interest rate of 1.85 percent per quarter. The credit line also requires that 2.5 percent of the unused portion of the credit line be deposited in a non-interest-bearing account as a compensating balance. Food Galore's short-term investments are earning .48 percent per quarter. What is the effective annual interest rate on this arrangement if the line of credit goes unused all year? Assume any funds borrowed or invested use compound interest. A) 7.61 percent B) 10.38 percent C) 1.93 percent D) 2.14 percent E) 3.47 percent

Q: Rachel's has a $45,000 line of credit with an interest rate of 7.4 percent and a compensating balance requirement of 2.75 percent. The compensating balance is based on the total amount borrowed with funds being held in an interest-free account. What is the effective annual interest rate if the company requires $28,000 of borrowed funds for one year? A) 7.64 percent B) 7.58 percent C) 7.51 percent D) 7.61 percent E) 7.42 percent

Q: Juno Industrial Supply has a line of credit of $200,000 with an interest rate of 7.1 percent. The loan agreement requires a compensating balance of 3.3 percent of the total amount borrowed, which will be held in an interest-free account. What is the effective interest rate if the company requires $132,000 for operations for one year? A) 7.27 percent B) 7.21 percent C) 7.38 percent D) 7.53 percent E) 7.34 percent

Q: Fancy Footwear has a line of credit with a local bank in the amount of $175,000. The loan agreement calls for annual interest of 6.8 percent with a compensating balance of 3 percent of the total amount borrowed. The compensating balance will be deposited into an interest-free account. What is the effective interest rate on the loan if the firm needs $125,000 to cover expenses for one year? A) 7.01 percent B) 7.13 percent C) 6.94 percent D) 7.17 percent E) 7.08 percent

Q: You've worked out a line of credit arrangement that allows you to borrow up to $35 million at any time. The interest rate is .52 percent per month. In addition, 2.5 percent of the amount that you borrow must be deposited in a non-interest-bearing account. Assume your bank uses compound interest on its line of credit loans. What is the effective annual interest rate on this lending arrangement? A) 6.59 percent B) 6.72 percent C) 6.42 percent D) 6.87 percent E) 6.94 percent

Q: Assume Laksko's has credit sales of $462,400 in March, $507,500 in April, and $550,200 in May. Also assume that 64 percent of sales are collected in the month of sale, 35 percent are collected in the following month, and the remainder are never collected. Credit purchases are $224,600 in March, $236,700 in April, and $252,700 in May. Credit purchases are paid in 30 days. Interest is $12,400 a month, wages and other expenses are $64,400 a month. Fixed assets purchases of $119,500 are scheduled for April with additional purchases of $56,400 in May. The April 1 cash balance was $321,060 and taxes of $180,000 must be paid on April 15. What is the cash balance at the end of May? A) $348,887 B) $351,008 C) $414,141 D) $440,777 E) $366,653

Q: TDC's purchases from suppliers in a quarter are equal to 61 percent of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 18 percent of sales, and interest and dividends are $72 per quarter. No capital expenditures are planned. The projected sales for Year 1 are $730, $770, $710, and $850 for Quarters 1 to 4, respectively. Sales for the first quarter of Year 2 are projected at $760. What is the amount of the total disbursements for Quarter 3 of Year 1? A) $672 B) $661 C) $649 D) $678 E) $634

Q: DM Electronics has projected sales of $1,700, $1,900, $2,400, and $4,200 for Quarters 1 to 4, respectively. Sales in the following year are projected to be 4 percent greater in each quarter. Assume purchases during each quarter equal 48 percent of projected sales for the following quarter. How much will be paid to suppliers in Quarter 2 if its accounts payable period is 30 days? A) $1,146 B) $1,108 C) $1,072 D) $1,251 E) $984

Q: Duck-n-Run has projected sales of $280,000 for January, $315,000 for February, and $336,000 for March. The company collects 62 percent of sales in the month of sale, 35 percent in the month after sale, and 3 percent two months after sale. The accounts receivable balance at the end of the previous quarter was $9,600. What is the amount of the February collections? A) $293,300 B) $326,970 C) $302,900 D) $301,333 E) $293,588

Q: The Box Store has a beginning cash balance of $318 on March 1. Projected sales are $720 for February, $850 for March, and $980 for April. The cost of goods sold is equal to 57 percent of sales with goods being purchased one month prior to the month of sale. The accounts payable period is 45 days and the accounts receivable period is 20 days. The firm has monthly cash expenses of $274. What is the projected ending cash balance at the end of March? Assume every month has 30 days. A) $342 B) $360 C) $407 D) $418 E) $372

Q: On May 1, Jensen's had a beginning cash balance of $284. April sales were $810 and May sales were $960. During May, cash expenses were $360 and payments on accounts payable were $630. The accounts receivable period is 30 days. What is the beginning cash balance on June 1? A) $145 B) $254 C) $104 D) $183 E) $265

Q: As of the beginning of the quarter, Callahan's had a cash balance of $710. During the quarter, the company collected $1,860 from customers and paid suppliers $1,520. The company also paid a loan payment of $320 and a tax payment of $510. What is Callahan's cash balance at the end of the quarter? A) $110 B) $290 C) $220 D) $150 E) $90

Q: Kid's Delight expects to sell $135,900 of toys in December, $64,700 in January, $74,400 in February, and $56,800 in March. The wholesale cost is 58 percent of the retail price. The receivables period is 30 days, the payables period is 60 days, and all inventory is purchased one month prior to selling it. What is the accounts payable balance at the end of February? Assume a year has 360 days. A) $74,544 B) $80,678 C) $79,327 D) $76,168 E) $76,096

Q: Nadine's Boutique has an accounts payable period of 30 days. Sales of $3,300, $3,400, $4,600, and $4,100 are expected for Quarters 1 through 4, respectively. The cost of goods sold is equal to 62 percent of the next quarter's sales. The accounts payable balance is $975 as of the beginning of Quarter 1. What is the amount of the projected cash disbursements for accounts payable for Quarter 2 of next year? Assume a year has 360 days. A) $2,645 B) $2,486 C) $2,567 D) $2,604 E) $2,670

Q: The Purple House has projected sales of $38,000, $47,500, $52,700, and $85,000 for Quarters 1 through 4 of next year, respectively. Inventory is purchased at 58 percent of the sales price and is purchased one quarter prior to the quarter of sale. The accounts payable period is 45 days. The accounts payable balance at the beginning of the year is $72,000. What is the amount of the expected disbursements for the third quarter? A) $29,058 B) $39,933 C) $40,250 D) $34,550 E) $28,333

Q: The Dog House expects sales of $770, $860, $950, and $960 for the months of May through August, respectively. The company collects 84 percent of sales in the month of sale, 13 percent in the month following the month of sale, and 1 percent in the second month following the month of sale. The remaining sales are never collected. How much money does the company expect to collect in the month of July? A) $918 B) $856 C) $876 D) $874 E) $943

Q: Breakwater Aquatics has an accounts receivable period of 36 days. The estimated quarterly sales for this year, starting with the first quarter, are $6,800, $7,100, $8,200, and $6,400, respectively. What is the accounts receivable balance at the beginning of the third quarter? Assume a year has 360 days. A) $3,644 B) $2,840 C) $3,308 D) $2,560 E) $3,280

Q: The Sports Store has a beginning receivables balance on January 1 of $2,640. Sales for January through April are $3,440, $3,590, $2,690, and $4,720, respectively. The accounts receivable period is 45 days. How much did the store collect in the month of April? Assume a year has 360 days. A) $3,515 B) $3,445 C) $3,140 D) $3,690 E) $3,705

Q: S&S Sporting Goods has expected sales of $970, $910, $840, and $920 for the months of January through April, respectively. The accounts receivable period is 33 days. What is the accounts receivable balance at the end of February? Assume each month has 30 days. A) $1,007 B) $989 C) $1,102 D) $910 E) $1,068

Q: Plant Mart has a beginning receivables balance on February 1 of $1,648. Sales for February through May are $2,670, $2,940, $3,820, and $4,450, respectively. The accounts receivable period is 15 days. What is the amount of the April collections? Assume a year has 360 days. A) $3,010 B) $3,380 C) $2,805 D) $3,545 E) $3,470

Q: Tall Guys Clothing has a 30-day collection period. Sales for the next calendar year are estimated at $1,950, $2,100, $2,650 and $3,200, respectively, by quarter, starting with the first quarter of the year. Given this information, which one of the following statements is correct? Assume a year has 360 days. A) The Quarter 2 collections will be $2,000. B) The accounts receivable balance at the beginning of Quarter 4 will be $940. C) The Quarter 3 collections will be $2,375. D) The end of Quarter 4 accounts receivable balance will be $2,133. E) The Quarter 4 collections will be $3,017.

Q: Wake-Up Coffee has projected next year's quarterly sales at $960, $890, $980, and $1,050 for Quarters 1 to 4, respectively. Accounts receivable at the beginning of the year are $212 and the collection period is 18 days. What is the amount of the accounts receivable balance at the end of Quarter 2? Assume a year has 360 days. A) $212 B) $207 C) $178 D) $184 E) $167

Q: AC Corporation has beginning inventory of $11,062, accounts payable of $8,010, and accounts receivable of $7,844. The end of year values are $11,362 for inventory, $7,898 for accounts payable, and $8,029 for accounts receivable. Net sales are $109,100 and costs of goods sold are $56,220. How many days are in the cash cycle? A) 47.7 days B) 80.2 days C) 55.8 days D) 97.9 days E) 67.8 days

Q: Rossiter's currently has a cash cycle of 43.4 days. Assume the operations are changed such that the receivables period decreases by 2.6 days, the inventory period by increases by 1.3 days, and the payables period increases by 3.4 days. What will be the length of the cash cycle after these changes? A) 39.2 days B) 45.5 days C) 38.7 days D) 41.3 days E) 48.1 days

Q: Peterson's Antiquities currently has a 32.6-day cash cycle. Assume the company changes its operations such that it decreases its receivables period by 3.1 days, increases its inventory period by 1.8 days, and increases its payables period by 2.2 days. What will the length of the cash cycle be after these changes? A) 33.5 days B) 36.1 days C) 30.2 days D) 29.1 days E) 27.6 days