1. Asendia USA has an inventory period of 43 days, an accounts payable period of 28 days, and an accounts receivable turnover rate of 36. What is the length of the cash cycle? (Assume a 365-day year)
2. As of the beginning of the quarter, O’Neill’s Pub Supplies had a cash balance of $460. During the quarter, the company collected $520 from customers and paid suppliers $330. The company also paid an interest payment of $25 and a tax payment of $150. In addition, the company repaid $200 on its long-term debt. What is O’Neill’s cash balance at the end of the quarter?
3. At the beginning of the year, you have an outstanding short-term loan of $2,575 which was used to cover your cash needs for the previous year. The interest expense for the year is $305. The projected net cash flow for this year is $1,045, prior to any payment of principal or interest on this loan. What is your anticipated loan balance at year end?
4. On an average day, Plastics Enterprises writes 42 checks with an average amount of $587. These checks clear the bank in an average of 2 days. What is the average amount of the disbursement float?