Exam 18: Short-Term Finance Amcq Planning

Southern Markets has an accounts receivable period of 30 days.In the first quarter of a calendar year,the firm's accounts receivable collections will equal its credit sales for the months of:

Smiley and Sons has an inventory period of 42 days,an accounts payable period of 33 days,and an accounts receivable period of 38 days.Management is considering offering a 2 percent discount if its credit customers pay for their purchases within 10 days.If the new discount is offered,the accounts receivable period is expected to decline by 19 days.If the new discount is offered,the cash cycle will change from ________ days to ________ days.

Martinique's Boutique has a 45-day collection period.Sales for the next four quarters are estimated at $1,500,$1,600,$2,100,and $1,900,respectively,starting with the first quarter of the year.Given this information,which one of the following statements is correct? Assume a 360-day year.

Jupiter stores had a Quarter 2 beginning cash balance of $647.Sales for Quarters 1 through 3 are estimated at $800,$950,and $1,200,respectively.The cost of goods sold is equal to 59 percent of sales.Goods are purchased one quarter prior to the month of sale.The accounts payable period is 30 days,and the accounts receivable period is 15 days.The firm had quarterly cash expenses of $210.What was the cash balance at the end of Quarter 2? Assume a 360-day year.

A flexible short-term financial policy

A restrictive short-term financial policy tends to

Buster's had a beginning cash balance of $2,780 for the quarter.During the quarter,the firm had cash collections of $41,309,wages and other cash expenses of $18,800,payments on account of $21,308,and dividends paid of $1,200.The beginning short-term debt is $6,800 with a quarterly interest rate of 2 percent.The firm just adopted a new policy which sets the minimum cash balance at $600.At quarter end,the cumulative surplus (deficit)is ________ and the ending short-term debt is ________.

Birds Unlimited has a 45-day accounts payable period.The firm has expected sales for Quarters 1 through 4 of next year of $2,240,$2,650,$2,820,and $2,700,respectively.The cost of goods sold for a quarter is equal to 58 percent of the next quarter's sales.What is the amount of the projected cash disbursements for accounts payable for Quarter 3? Assume a 360-day year.

Which one of these managers is most apt to post customer payments to their accounts?

Dixie's has a net cash inflow for the quarter of -$108.The beginning cash balance is $212.Company policy is to maintain a minimum cash balance of $75 and borrow only the amount that is necessary to maintain that balance.How much does the firm need to borrow to have a zero cumulative surplus?

Which financial policy,or policies,uses both marketable securities and short-term financing to fund seasonal variations in asset needs?

Flexible short-term financial policies tend to

Pat's Place has sales of $613,700 and cost of goods sold of $338,514.At the beginning of the year,inventory was $56,509.At the end of the year,the inventory balance was $52,411.What is the inventory turnover rate?

The most common means of financing a temporary cash deficit is a

A restrictive short-term financial policy is most associated with both

For a levered firm,an additional 3-day delay in paying suppliers will

Smithfield's has a line of credit with a local bank of $75,000.The loan agreement calls for interest of 6 percent with a compensating balance requirement of 3 percent that is based on the total amount borrowed.What is the effective interest rate if the firm needs $58,000 for 1 year to finance a fixed asset purchase?

D&M sells its inventory in 67 days on average.Their customers generally charge their purchases on a credit card with payment being received in 2 days.The company takes 61 days on average to pay for its purchases.Given this information,what is the length of the company's cash cycle?

A short-term loan where the borrower pledges its accounts receivable as security but is still responsible for any uncollectible account is referred to as