The accounts payable period is 5078 days what is the


QUESTION 1

Indicate the effect of the following on the cash cycle: Accounts payable period goes up

No change

Decrease

Increase

QUESTION 2

Indicate the effect of the following on the operating cycle: Customers take longer to make the payment

Decrease

Increase

No change

QUESTION 3

Indicate the effect of the following on the operating cycle: Accounts payable goes up

Decrease

Increase

No change

QUESTION 4

Which one of the following is most indicative of a flexible short-term financial policy?

Relatively low level of accounts receivable

Relatively low level of inventory

Relatively high ratio of current assets to total assets

Relatively high ratio of short-term debt to total debt

Relatively low level of liquidity

QUESTION 5

ABC Corporation currently has an inventory turnover of 10.49, a payables turnover of 6.55, and a receivables turnover of 15.88. How many days are in the operating cycle? 19.82 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 6

Month Sales $

Month Sales $

Jan 47,086

July 41,322

Feb 38,324

Aug 17,482

Mar 17,482

Sep 47,086

Apr 41,322

Oct 17,482

May 47,086

Nov 38,324

June 38,324

Dec 41,322

The company has estimated expenses as follows:

General and administrative expenses: $9,474
Material purchases are 68 percent of sales. Material purchases are paid in the month following the purchase.
Interest payment per month: $4,317
Rent expenses per quarter starting March: $3,604

Calculate the cash outflows for June. 49413.48

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 7

ABC Company writes 111 checks a day for an average amount of $431 each. These checks generally clear the bank in 5 days. In addition, the firm generally receives an average of $120,169 a day in checks that are deposited immediately. Deposited funds are available in 1 days. What is the firm's net float? 138737.20

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

Identify a source of cash from below. Choose only one.

decrease in long-term debt

decrease in current liabilities

Increase in fixed assets

Decrease in accounts receivable

increase in inventory

QUESTION 9

Month Sales $

MonthSales $

Jan 12,253

July 24,470

Feb 39,606

Aug 46,950

Mar 46,950

Sep 12,253

Apr 24,470

Oct 46,950

May 12,253

Nov 39,606

June 39,606

Dec 24,470

Sales are collected as follows:

In the month of Sales: 40%

In the next month: 34%

After 2 months: 13%

Remainder is considered as bad debt and is not collected.

Calculate the cash collection for June. 23, 189.52

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 10

ABC Company has a cash cycle of 10.85 days, an operating cycle of 21.94 days, and an average collection period of 7 days. The company reported cost of goods sold of $299,787. What is the company's average balance in Accounts Payable? 9108.60

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

ABC Corporation currently has an inventory turnover of 5.05, a payables turnover of 24.95, and a receivables turnover of 11.09. How many days are in the cash cycle? 90.56

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 12

As of this morning, your firm had a ledger balance of $4,894 with no outstanding deposits or checks. Today, your firm deposited 5 checks in the amount of $234 each and wrote 6 checks in the amount of $958 each. What is the amount of the disbursement float as of the end of the day? 5748

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

Identify which of the following will increase the operating cycle. Choose only one.

decrease in average collection period

Decrease in inventory turnover ratio

decrease in accounts payable turnover ratio

decrease in accounts payable period

decrease in days' sales in inventory

QUESTION 14

ABC Company has annual sales of $483,743 and cost of goods sold of $198,600. The average accounts receivable balance is $116,776. How many days on average does it take the firm to collect its accounts receivable? Assume 365 days. 88.11

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 15

Compute the cash cycle based on the following information: 55

Average Collection Period = 60

Accounts Payable Period = 45

Average Age of Inventory = 42

QUESTION 16

As of this morning, your firm had a ledger balance of $4,641 with no outstanding deposits or checks. Today, your firm deposited 6 checks in the amount of $412 each and wrote a check in the amount of $999. What is the amount of the collection float as of the end of the day? 2472

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 17

Month Sales $

Month Sales $

Jan 46,126

July 19,302

Feb 44,598

Aug 38,231

Mar 38,231

Sep 46,126

Apr 19,302

Oct 38,231

May 46,126

Nov 44,598

June 44,598

Dec 19,302

Sales are collected as follows:

In the month of Sales: 40%
In the next month: 27%
After 2 months: 5%
After 3 months: remainder is collected

Calculate the cash collection for November. 41172.55

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 18

ABC Company has annual sales of $400,000 and cost of goods sold of $335,709. The accounts payable period is 50.78 days. What is the average accounts payable balance? 56632.82

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

Compute the Accounts Payable (A/P) period based on the following information:

Average A/P balance = $36,501

Annual Cost of Goods Sold = $177,052

Assume 365 days 75.25

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 20

ABC Company has an average collection period of 32 days and factors all of its receivables immediately at a 1.1 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing? 28.18

Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

QUESTION 21

On July 15th, you purchased $10,000 worth of goods. The terms of the sale were 1/9, net 39. 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 22

Month Sales $

Month Sales $

Jan 45,450

July 42,870

Feb 29,949

Aug 34,840

Mar 34,840

Sep 45,450

Apr 42,870

Oct 34,840

May 45,450

Nov 29,949

June 29,949

Dec 42,870

Sales are collected as follows:

In the month of Sales: 34%
In the next month: 21%
After 2 months: 10%
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 23

Which of the following is a Source of Cash? Choose only one.

Increase in current assets

Increase in fixed assets

Increase in long-term debt

decrease in current liabilities

decrease in equity

QUESTION 24

The terms of the sale were 2/9, net 56. 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.

Solution Preview :

Prepared by a verified Expert
Financial Management: The accounts payable period is 5078 days what is the
Reference No:- TGS02748554

Now Priced at $30 (50% Discount)

Recommended (92%)

Rated (4.4/5)