Exam 18: Short-Term Finance Amcq Planning

True Blue Stores had a beginning accounts payable balance of $87,300 and an ending accounts payable balance of $79,460.Sales for the period were $702,000,and costs of goods sold were $423,600.What is the payables turnover rate?

The primary difference between a line of credit and a revolving credit arrangement is the

Bruceton Farms currently has an operating cycle of 76.3 days.The firm is analyzing some operational changes that are expected to decrease the accounts receivable period by 2.8 days and decrease the inventory period by 3.1 days.The accounts payable turnover rate is expected to increase from seven to eight times per year.If all of these changes are adopted,what will be the firm's new operating cycle?

Assume you are completing a short-term financial plan spreadsheet.The cumulative surplus will be equal to the

Which one of these statements is correct?

Smith and Johnson have expected sales of $427,$489,$626,and $738 for the months of January through April,respectively.The accounts receivable period is 15 days.How much did the firm collect in the month of April? Assume a 360-day year.

As of the beginning of the quarter,a firm has a cash balance of $318.During the quarter,the firm pays its suppliers $297 and collects $398 from customers.It also pays an interest payment of $32 and a tax bill of $164.In addition,the firm borrows $125.What is the cash balance at the end of the quarter?

Assume all sales and purchases are on credit.Which one of the following statements is correct concerning the cash cycle?

If the accounts receivable balance on a firm's balance sheet decreases without any change in credit sales,the operating cycle will

A flexible short-term financial policy

The Down Towner has sales of $748,320 and average accounts payable of $128,209.The cost of goods sold is equivalent to 62 percent of sales.How long does it take the company to pay its suppliers?

Prudoe Fuels factors its accounts receivable immediately at a discount of 1.65 percent.The average collection period is 43 days.Assume all accounts are collected in full.What is the effective annual interest rate on this arrangement? Assume a 365-day year.

Which of the following could be the cause of a lengthening cash cycle?

Brooke Industries has sales of $938,000 and cost of goods sold of $468,000.The firm had a beginning inventory of $124,600 and an ending inventory of $132,900.What is the length of the inventory period?

A compensating balance I.is required when a firm acquires bank financing other than a line of credit. II)increases the cost of short-term bank financing. III)represents an opportunity cost to the lending institution. IV)is often used as a means of paying for banking services received.

An increase in which one of the following will decrease the cash cycle,all else equal?

A firm has sales of $914,700.The cost of goods sold is equal to 61 percent of sales.The firm has an average inventory of $108,200.How many days on average does inventory sit on the shelf prior to being sold?

Under which type of credit arrangement does a public warehouse act as a control agent?

The total sum of the carrying costs and the shortage costs will be lowest at the point where

Which one of the following is a use of cash?