14. Mesa Co. has an $80,000 line of credit with a 12 percent interest rate and a 10 percent compensating balance requirement that is based on the total amount borrowed. What is the effective annual interest rate if the firm needs $45,000 for one year?
12.54% 13.33% 12.12% 12.67% 12.00%
15. A firm has an inventory turnover rate of 16, a receivables turnover rate of 16, and a payables turnover rate of 16. How long is the operating cycle?
63.08 days 40.00 days 45.625 days 73.37 days 42.87 days16.
Acme expects sales of $530, $560, $740, and $790 for the months of April through July, respectively. The firm collects 23 percent of sales in the month of sale, 51 percent in the month following the month of sale, and 24 percent in the second month following the month of sale. The remaining 2 percent of sales is never collected. How much money does the firm expect to collect in the month of July? $683.50 $701.40 $711.20 $742.60 None of the above.