1. Suppose that Sales for the entire year were $200,000 and Cost of Goods Sold 60% of Sales. The Inventory Balance is $10,000, the Accounts Payable Balance is $5,000, and the Cash Conversion Cycle is 50 days. What is the Accounts Payable Deferral Period?
a.15 b. 20 c. 25 d. 30
2. What is the effective cost of a six-month discount loan of $100,000 with a stated rate of 8% if there are $100 in closing costs due at the beginning?
a.8.34% b. 8.55% c. 8.73% d. 9.16%