公司理财精要版原书第12版习题库答案Ross12e-Chapter18-TB

FundamentalsofCorporateFinance912e(Ross)Chapter18Short-TermFinanceandPlanningWhichoneofthefollowingactionsrepresentsasourceofcash?GrantingcredittoacustomerPurchasingnewmachineryMakingapaymentonabankloanPurchasinginventoryAcceptingcreditfromasupplierWhichoneoftheseactionsrepresentsauseofcash?CollectingareceivablePayingemployeewagesSellinginventoryforcashObtainingabankIoanPurchasinginventoryoncreditWhichoneoftheseactivitiesrepresentsasourceofcash?IncreasingaccountsreceivableDecreasinginventoryIncreasingfixedassetsDecreasingaccountspayableDecreasingcommonstockWhichoneofthefollowingactionswillincreasenetworkingcapital?Assumethecurrentratioisgreaterthan1.0.PayingasupplierforapreviouspurchasePayingoffalong-termdebtSellinginventoryatcostforcashPurchasinginventoryoncreditSellinginventoryataprofitoncreditWhichoneofthefollowingwilldecreasenetworkingcapital?Assumethecurrentratioisgreaterthan1.0.SellinginventoryatcostCollectingpaymentfromacustomerPayingadividendtoshareholdersSellingafixedassetforlessthanbookvaluePayingasupplierforpriorpurchasesWhichoneoftheseactionswillincreasetheoperatingcycle?Assumeallelseheldconstant.A)DecreasingthepayablesperiodDecreasingthereceivablesturnoverrateIncreasingthepayablesperiodDecreasingtheaverageinventorylevelIncreasingtheinventoryturnoverrateTheoperatingcycleisequaltothe:cashcycleplustheaccountsreceivableperiod.inventoryperiodplustheaccountsreceivableperiod.inventoryperiodplustheaccountspayableperiod.accountspayableperiodminusthecashcycle.accountspayableperiodplustheaccountsreceivableperiod.Whichoneofthefollowingwilldecreasetheoperatingcycle?DecreasingtheinventoryturnoverrateDecreasingtheaccountspayableperiodIncreasingtheaccountsreceivableturnoverrateIncreasingtheaccountspayableperiodIncreasingtheaccountsreceivableperiodTheoperatingcycledescribeshowaproduct:ispriced.issold.movesthroughthecurrentassetaccounts.movesthroughtheproductionprocess.generatesaprofit.Whichoneoftheseaffectsthelengthofthecashcyclebutnottheoperatingcycle?InventoryperiodAccountspayableperiodBoththeaccountsreceivableandinventoryperiodsAccountsreceivableperiodBoththeaccountsreceivableandtheaccountspayableperiodsWhichoneofthesewilldecreasethecashcycle,allelseheldconstant?IncreasingtheaccountsreceivableturnoverrateDecreasingtheaccountspayableperiodIncreasingtheinventoryperiodDecreasingtheinventoryturnoverrateIncreasingtheaccountsreceivableperiodAdecreaseinwhichoneofthefollowingwillincreasethecashcycle,allelseheldconstant?PayablesturnoverDayssalesininventoryOperatingcycleInventoryturnoverrateAccountsreceivableperiodMetalDesignshistoricallyproducedproductsforinventory.Now,theyonlyproduceaproductwhenanactualorderisreceivedfromacustomer.Allelseequal,thischangewill:A)increasetheoperatingcycle.lengthentheaccountsreceivableperiod.shortentheaccountspayableperiod.decreasethecashcycle.decreasetheinventoryturnoverrate.Whichoneofthesestatementsiscorrect?Assumeallelseheldconstant.Adecreaseintheaccountsreceivableturnoverratedecreasesthecashcycle.Thecashcycleisequaltotheoperatingcycleminustheinventoiyperiod.Anegativecashcycleispreferabletoapositivecashcycle.Adecreaseintheaccountspayableperiodshortensthecashcycle.Thecashcycleplustheaccountsreceivableperiodisequaltotheoperatingcycle.Whichoneofthefollowingstatementsiscorrectconcerningthecashcycle?Thelongerthecashcycle,themorelikelyacompanywillneedexternalfinancing.Increasingtheaccountspayableperiodincreasesthecashcycle.Acceptingasuppliersdiscountforearlypaymentdecreasesthecashcycle.Thecashcyclecanexceedtheoperatingcycleifthepayablesperiodisequaltozero.Offeringearlypaymentdiscountstocustomerswilltendtoincreasethecashcycle.Whichoneofthefollowingactionswilltendtoincreasetheinventoryperiod?Discontinuingallslow-sellingmerchandiseSellingobsoleteinventorybelowcostjusttogetridofitBuyingrawmaterialsonlyasneededforthemanufacturingprocessProducinggoodsondemandversusforinventoryIncreasinginventoryselectiontoattractmorecustomersWhichoneofthefollowingactionswilltendtoincreasetheaccountsreceivableperiodfromitscurrent14days?TighteningthestandardsforgrantingcredittocustomersRefusingtograntadditionalcredittoanycustomerwhopayslateIncreasingthefinancechargesappliedtoallcustomerbalancesoutstandingover30daysGrantingdiscountsforcashsalesEliminatingthediscountforearlypaymentbycreditcustomersAnincreaseinwhichoneofthefollowingisanindicatorthatanaccountsreceivablepolicyisbecomingmorerestrictive?A)BaddebtsAccountsreceivableturnoverrateAccountsreceivableperiodCreditsalesOperatingcycleAssumeallelseheldconstant.Ifyoupayyoursuppliersthreedayssooner,then:yourpayablesturnoverratewilldecrease.youmayrequireadditionalfundsfromothersourcestofundthecashcycle.thecashcyclewilldecrease.youroperatingcyclewilldecrease.theaccountsreceivableperiodwilldecrease.Whichoneofthefollowingwillincreasetheaccountspayableperiod,allelseheldconstant?AdecreaseintheinventoryperiodAnincreaseintheendingaccountspayablebalanceAnincreaseinthecashcycleAdecreaseintheoperatingcycleAnincreaseintheaccountspayableturnoverrateWhichoneofthefollowingmanagersdetermineswhichcustomersmustpaycashandwhichcanchargetheirpurchases?PurchasingmanagerCreditmanagerC)ControllerD)ProductionmanagerE)PayablesmanagerWhichoneofthefollowingmanagersdetermineswhenasupplierwillbepaid?A)ControllerPayablesmanagerCreditmanagerPurchasingmanagerProductionmanagerThelengthoftimebetweenthepurchaseofinventoryandthereceiptofcashfromthesaleofthatinventoryiscalledthe:operatingcycle.inventoryperiod.accountsreceivableperiod.accountspayableperiod.cashcycle.Thelengthoftimethatelapsesbetweenthedayatitemofinventoryispurchasedandthedaythatitemsellsiscalledthe:operatingcycle.inventoryperiod.accountsreceivableperiod.accountspayableperiod.cashcycle.Thelengthoftimebetweenthesaleofinventoryandthecollectionofthepaymentforthatsaleiscalledthe:operatingcycle.inventoryperiod.accountsreceivableperiod.accountspayableperiod.cashcycle.Thelengthoftimebetweenthedayanitemispurchasedfromasupplieruntilthedaythatsupplierispaidforthatpurchaseiscalledthe:operatingcycle.inventoryperiod.accountsreceivableperiod.accountspayableperiod.cashcycle.CentralSupplypaidoffanaccountspayableforatobogganithadpurchasedoncreditthreeweeksago.ThetimeperiodbetweentodayandthedayCentralSupplywillreceivecashfromthesaleofthistobogganiscalledthe:operatingcycle.inventoryperiod.accountsreceivableperiod.accountspayableperiod.cashcycle.Coststhatincreaseasafirmacquiresadditionalcurrentassetsarecalledcosts.carryingshortageordersafetytradingCoststhatdecreaseasacompanyacquiresadditionalcurrentassetsarecalledcosts.carryingshortagedebtequitypayablesAfirmwithaflexibleshort-termfinancialpolicywill:maintainalowbalanceinaccountsreceivables.onlyhaveminimalamounts,ifany,investedinmarketablesecurities.investheavilyininventory.havelowcashbalances.havetightrestrictionsongrantingcredittocustomers.Whichoneoftheseisindicativeofashort-termrestrictivefinancialpolicy?Purchasinginventoryonanas-neededbasisGrantingcredittoallcustomersInvestingheavilyinmarketablesecuritiesMaintainingalargeaccountsreceivablebalanceKeepinginventorylevelshighIfacompanyadherestoarestrictiveshort-termfinancialpolicy,thentheywillgenerallyhave:little,ifany,investmentinmarketablesecurities.lowinventoryturnoverrates.liberalcredittermsforcustomers.few,ifany,stockouts.highcashbalances.TheLumberMartrecentlyreplaceditsmanagementteam.Asaresult,theyareimplementingarestrictiveshort-termfinancialpolicyinplaceoftheflexiblepolicyunderwhichtheyhadbeenoperating.Whichoneofthefollowingshouldtheemployeesexpectasaresultofthispolicychange?IncreasingmonthlysalesascomparedtotheprioryearGreaterinventoryselectionFewerout-of-stockoccurrencesLossofcreditcustomersMoreliberalcredittermsAflexibleshort-termfinancialpolicy:increasestheneedforlong-termfinancing.minimizesnetworkingcapital.avoidsbaddebtsbyonlysellingitemsforcash.maximizesfixedassetsandminimizescurrentassets.ismostappropriatewhencarryingcostsarehighandshortagecostsarelow.Aflexibleshort-termfinancialpolicy:maximizescashouts.increasesshortagecostsduetofrequentcash-outs.tendstodecreasesalesascomparedtoarestrictivepolicy.incursmorecarryingcoststhanarestrictivepolicy.requiresonlyaminimuminvestmentincurrentassets.Shortagecostsareleastassociatedwith:stockoutsandcashouts.lostcustomergoodwill.disruptionsofproductionschedules.inventoryorderingcosts.opportunitycostsincurredbyhighlevelsofworkingcapital.Theoptimalinvestmentincurrentassetsforanactivecompanyoccursatthepointwhere:bothshortagecostsandcarryingcostsequalzero.shortagecostsareequaltozero.carryingcostsareequaltozero.carryingcostsexceedshortagecosts.shortagecostsandcarryingcostsareequal.Acompany:witharestrictivefinancingpolicysecuressufficientlong-termfinancingtofundallitsassets.withaflexiblefinancingpolicyfrequentlyinvestsinmarketablesecurities.withaflexiblefinancingpolicytendstouseshort-termfinancingonanongoingbasis.willtendtoavoidshort-termfinancingunderbothrestrictiveandflexiblefinancingpolicies.withseasonalsalesmustselectflexiblefinancingpolicies.Whichoneofthefollowingstatementsiscorrect?Seasonalneedsarefinancedwithshort-termloanswhencompaniesadheretoaflexiblefinancingpolicy.Aflexiblefinancingpolicytendstoincreasetheriskofencounteringfinancialdistress.Long-terminterestratestendtobelessvolatilethanshort-termrates.Mostcompaniestendtofinanceinventorywithlong-termdebt.Short-terminterestratesaregenerallyhigherthanlong-termrates.Whichoneofthesebestdescribesacharacteristicofaflexiblefinancingpolicy?Allofacompany'sassetsarefinancedwithlong-termdebt.Onlylong-termassetsarefinancedwithlong-termdebt.Short-termfinancingwillbeusedtofinanceseasonalpeaks.Inventoryispurchasedwithcash.Lowlevelsofinventoryaremaintained.Withacompromisefinancialpolicycompanieswill:borrowonlylong-termfundsandrefuseanyloansthatrequirecompensatingbalances.borrowshort-termfundsandalsoinvestinmarketablesecurities.financealloftheirassetswithvariousshort-termloans.financetheirseasonalassetpeakswithshort-termdebtandtheremainderoftheirassetswithequity.financehalfoftheirfixedassetswithlong-termdebtandhalfwithshort-termdebt.Assumeeachmonthhas30daysandacompanyhasa30-dayaccountsreceivableperiod.Duringthesecondcalendarquarteroftheyear,thatcompanywillcollectpaymentforthesalesitmadeduringwhichofthefollowingmonths?A)February,March,andAprilApril,MayandJuneDecember,January,andFebruaryJanuary,February,andMarchMarch,April,andMayTheHarvestercollects55percentofsalesinthemonthofsale,40percentofsalesinthemonthfollowingthemonthofsale,and5percentofsalesinthesecondmonthfollowingthemonthofsale.DuringthemonthofApril,theywillcollect:55percentofFebiuarysales.5percentofAprilsales.40percentofMarchsales.5percentofMarchsales.40percentofFebnjaiysales.Timkohasa90-daycollectionperiodandproducesseasonalmerchandise.Salesarelowestduringthefirstcalendarquarterofayearandthehighestduringthethirdquarter.Thecompanymaintainsarelativelysteadylevelofproductionwhichmeansthatitscashdisbursementsarefairlyequalinallquarters.Thiscompanyismostapttofaceacash-outsituationin:A)thefirstquarter.thesecondquarter.thethirdquarter.thefourthquarter.anyquarterwithequalprobabilitiesofoccurrence.SummertimeAdventuresisaseasonalfirmthatenjoysitshighestsalesduringJulyandAugust.Thecompanypurchasesinventoryonemonthbeforeitissoldandpaysforitspurchases60daysaftertheinvoicedate.Whichoneofthefollowingstatementsissupportedbythisinformation?InventorypurchaseswillbehighestduringthemonthsofJulyandAugust.InventorypurchaseswillbehighestduringthemonthsofMayandJune.PaymentstosupplierswillbehighestduringthemonthsofJuneandJuly.PaymentstosupplierswillbehighestduringthemonthsofJulyandAugust.PaymentstosupplierswillbehighestduringthemonthsofAugustandSeptember.Whichoneofthefollowingcombinationsismostapttocauseacompanythatisgenerallyfinanciallysoundtohaveanegativenetcashinflowforaparticularquarter?LowfixedexpensesandlevelmonthlysalesAone-timeassetpurchaseandapproachinghighseasonalsalesHighlyseasonalsalesandaflexiblefinancingpolicyAflexiblefinancingpolicyandlevelmonthlysalesAlargecashsaleandlowfixedexpensesWhichoneofthefollowingstatementsiscorrectconcerningacompany'scashbalance?Mostfirmsattempttomaintainazerocashbalanceatalltimes.Thecumulativecashsurplusshownonacashbudgetisequaltotheendingcashbalanceplustheminimumdesiredcashbalance.Onacashbalancereport,thecumulativecashsurplusattheendofMayisusedasJune'sbeginningcashbalance.Acumulativecashdeficitindicatesaborrowingneed.Theendingcashbalancemustequaltheminimumdesiredcashbalance.Acumulativecashdeficitindicatesacompany:hasatleastashort-termneedforexternalfunding.isfacinglong-termfinancialdistress.willgooutofbusinesswithintheyear.iscapableoffundingallofitsneedsinternally.isusingitscashwisely.Stevehasestimatedthecashinflowsandoutflowsforhishardwarestorefornextyear.Thereportthathehaspreparedrecappingthesecashflowsiscalleda:proformaincomestatement.salesprojection.cashbudget.receivablesanalysis.creditanalysis.TaylorSupplyhasmadeanagreementwithitsbankthatallowsittoborrowupto$10,000atanytimeoverthenextyear.ThisaiTangementiscalleda(n):floorloan.openpensatingbalance.lineofcredit.banknote.Moneydepositedbyaborrowerwithabankinalowornon-interest-bearingaccountasaconditionofaloanagreementiscalleda:compensatingbalance.securedcreditdeposit.letterofcredit.lineofcash.pledge.BrustlesPotteryeitherfactorsorassignsallofitsreceivablestootherfirms.Thisisknownas:accountsreceivablefinancing.pledgedfinancing.capitalfunding.dailyfunding.capitalfinancing.RosesGiftShopborrowsmoneyonashort-termbasisbypledgingitsinventoryascollateral.Thisisanexampleofa(n):debenture.lineofcredit.bankersacceptance.workingloan.inventoryloan.Themostcommonwaytofinanceatemporarycashdeficitiswitha:long-termsecuredbankloan.short-termsecuredbankloan.short-termissueofcorporatebonds.long-termunsecuredbankloan.short-termunsecuredbankloan.Theprimarydifferencebetweenalineofcreditandarevolvingcreditarrangementisthe:typeofcollateralusedtosecuretheloan.lengthofthecreditperiod.factthatthelineofcreditisasecuredIoanandtherevolvingcreditarrangementisunsecured.factthatthelineofcreditisanunsecuredloanandtherevolvingcreditarrangementissecured.loansclassificationaseitheracommittedoranon-committedloan.Acompensatingbalance:isrequiredwhenacompanyacquiresanybankfinancingotherthanalineofcredit.isoftenusedbybanksasameansofrewardingtheirbestcreditcustomers.decreasesthecostofshort-termbankfinancing.onlyappliestozero-interestrateloans.mayberequiredevenifacompanyneverborrowsfunds.HighPointHotel(HPH)has$218,000inaccountsreceivable.Tofinanceamajorpurchase,thecompanyassignsthesereceivablestoCrossTownBank.Whichoneofthefollowingstatementscorrectlydescribesthistransaction?HPHwillimmediatelyreceive$218,000andwillhavenofurtherobligationrelatedtothesereceivables.HPHwillreceivesomeamountofcashimmediatelywhilemaintainingfullresponsibilityforanyuncollectedreceivables.CrossTownBankacceptsfullresponsibilityforthecollectionoftheaccountsreceivablesand,inexchange,immediatelypaysHPHadiscountedvalueforitsreceivables.CrossTownBankacceptsfullresponsibilityforcollectingtheaccountsreceivablesandpaysHPHadiscountedpricefortheaccountscollectedafterthenormalcollectionperiodhaselapsed.HPHreceivesthefullamountofitsreceivablesuponassignmentbutmustreimburseCrossTownBankforanyuncollectedaccount.Whichoneofthefollowingstatementsiscorrect?Theassignmentofreceivablesinvolvessellingaccountsreceivablesatfullprice.Linesofcreditfrequentlyrequireacleanupperiod.Withmaturityfactoring,theborrowerreceivestheloanamountimmediately.Commercialpaperisshort-termfinancingofferedtohighlyratedcorporationsbymajorbanks.Creditcardreceivablesfundingisarelativelyinexpensivemethodofborrowingonashorttermbasis.Whichtypeofarrangementisahardwarestoremostapttousetofinanceitsinventory?AccountsreceivableassignmentBlanketinventorylienTrustreceiptCommercialpaperFieldwarehousefinancingAnorangegrowerismostapttousewhichtypeoffinancingforitscrop?AccountsreceivableassignmentBlanketinventorylienTrustreceiptCommercialpaperFieldwarehousefinancingAllofthefollowingarebenefitsderivedfromshort-termfinancialplanningwiththeexceptionof:havingadvancenoticeofwhenyourfirmshouldrequireexternalfinancing.knowingforcertainwhatyourcashbalancewillbesixmonthsinadvance.knowingifexcessfundsshouldbeavailableforinvesting.beingabletodeterminetheapproximateextentoftimeforwhichaloanisrequired.havingtheabilitytotimecapitalexpendituresinordertoplacetheleastfinancialburdenpossibleonafirm.AutoDetailershasabooknetworthof$29,700.Long-tenndebtis$4,800.Networkingcapital,otherthancash,is$3,700andfixedassetsare$27,400.Howmuchcashdoesthecompanyhave?A)$3,900B)$4,800C)S4,300D)$3,400E)$3,700NewProductshassalesof$749,500andcostofgoodssoldof$368,600.Beginninginventoryis$54,700andendinginventoryis$58,200.Whatisthelengthoftheinventoryperiod?15.01days17.89days55.90days90.53days113.67days64)Mid-WesternMarketshassalesof$1,389,400andcostsofgoodssoldof$892,700.Beginninginventoryis$94,300andendinginventoryis$110,200.Whatistheinventoryturnoverrate?8.73times10.78times13.59times11.37times12.64times65)NorthSideWholesalershassalesof$1,648,900.Thecostofgoodssoldisequalto71percentofsalesandtheaverageinventoryis$75,800.Howmanydaysonaveragedoesittaketoselltheinventory?28.30days23.63days20.48days33.28days21.68daysTheBearRughassalesof$647,000.Thecostofgoodssoldisequalto66percentofsales.Accountsreceivablehasabeginningbalanceof$53,400andanendingbalanceof$49,600.Howlongonaveragedoesittaketocollectthereceivables?A)12.56days29.05days18.58days20.44days19.17daysMorningStarhascreditsalesof$1,032,800,costsofgoodssoldof$662,350,averageaccountsreceivableof$86,300,andaverageaccountspayableof$92,600.Onaverage,howlongdoesittakeMorningStar'screditcustomerstopayfortheirpurchases?11.97days39.24days30.50days21.88days19.56daysTheMountainTopShoppehassalesof$828,000,averageaccountsreceivableof$64,100andaverageaccountspayableof$72,700.Thecostofgoodssoldisequivalentto68percentofsales.HowlongdoesittakeTheMountainTopShoppetopayitssuppliers?69.31days68.38days47.13days35.89days36.97days73)InteriorDesignshasaninventoryperiodof84.6days,anaccountspayableperiodof43.2days,andanaccountsreceivableperiodof41.7days.Managementisconsideringanofferfromtheirsupplierstopaywithin10daysandreceiveadiscountof2percent.Ifthenewdiscountistaken,theaccountspayableperiodisexpectedtodeclineby30.4days.Whatwillbethenewoperatingcyclegiventhechangeinthepayablesperiod?95.9days115.0days97.4days126.3days139.1daysMetalProductsCo.hasaninventoryperiodof94.2days,anaccountspayableperiodof40.4days,andanaccountsreceivableturnoverrateof17.6.Whatisthelengthofthecashcycle?71.40days74.54days96.28days114.94days108.28daysWestChesterAutomationhasaninventoryturnoverof9.1andanaccountspayableturnoverof10.6.Theaccountsreceivableperiodis32.8days.Whatisthelengthofthecashcycle?35.67days38.48days41.02days46.47days48.81daysPetersonsAntiquitiescurrentlyhasa32.6-daycashcycle.Assumethecompanychangesitsoperationssuchthatitdecreasesitsreceivablesperiodby3.1days,increasesitsinventoryperiodby1.8days,andincreasesitspayablesperiodby2.2days.Whatwillthelengthofthecashcyclebeafterthesechanges?33.5days36.1days30.2days29.1days27.6daysRossitefscurrentlyhasacashcycleof43.4days.Assumetheoperationsarechangedsuchthatthereceivablesperioddecreasesby2.6days,theinventoryperiodbyincreasesby1.3days,andthepayablesperiodincreasesby3.4days.Whatwillbethelengthofthecashcycleafterthesechanges?A)39.2daysB)45.5days38.7days41.3days48.1daysACCorporationhasbeginninginventoryof$11,062,accountspayableof$8,010,andaccountsreceivableof$7,844.Theendofyearvaluesare$11,362forinventory,$7,898foraccountspayable,and$8,029foraccountsreceivable.Netsalesare$109300andcostsofgoodssoldare$56,220.Howmanydaysareinthecashcycle?47.7days80.2days55.8days97.9days67.8daysWake-UpCoffeehasprojectednextyearsquarterlysalesat$960,$890,$980,andSL050forQuarters1to4,respectively.Accountsreceivableatthebeginningoftheyearare$212andthecollectionperiodis18days.WhatistheamountoftheaccountsreceivablebalanceattheendofQuarter2?Assumeayearhas360days.A)$212B)$207C)S178D)$184E)$167TallGuysClothinghasa30-daycollectionperiod.Salesforthenextcalendaryearareestimatedat$1,950,$2,100,$2,650and$3,200,re叩ectively,byquarter,startingwiththefirstquaileroftheyear.Giventhisinformation,whichoneofthefollowingstatementsiscorrect?Assumeayearhas360days.TheQuarter2collectionswillbe$2,000.TheaccountsreceivablebalanceatthebeginningofQuarter4willbe$940.TheQuarter3collectionswillbe$2,375.TheendofQuarter4accountsreceivablebalancewillbe$2,133.TheQuarter4collectionswillbe$3,017.PlantMarthasabeginningreceivablesbalanceonFebruary1ofSL648.SalesforFebruarythroughMayare$2,670,$2,940,$3,820,and$4,450,re叩ectively.Theaccountsreceivableperiodis15days.WhatistheamountoftheAprilcollections?Assumeayearhas360days.A)$3,010B)$3,380C)$2,805D)$3,545E)$3,470S&SSportingGoodshasexpectedsalesof$970,$910,$840,and$920forthemonthsofJanuarythroughApril,respectively.Theaccountsreceivableperiodis33days.WhatistheaccountsreceivablebalanceattheendofFebruary?Assumeeachmonthhas30days.A)$1,007 . ・B)$989C)$1,102D)$910E)$1,068TheSportsStorehasabeginningreceivablesbalanceonJanuary1of$2,640.SalesforJanuarythroughAprilare$3,440,$3,590,$2,690,and$4,720,respectively.Theaccountsreceivableperiodis45days.HowmuchdidthestorecollectinthemonthofApril?Assumeayearhas360days.A)$3,515B)$3,445C)$3,140D)$3,690E)$3,705BreakwaterAquaticshasanaccountsreceivableperiodof36days.Theestimatedquarterlysalesforthisyear,startingwiththefirstquarter,are$6,800,$7,100,$8,200,and$6,400,respectively.Whatistheaccountsreceivablebalanceatthebeginningofthethirdquarter?Assumeayearhas360days.A)$3,644B)$2,840C)$3,308D)$2,560E)$3,280TheDogHouseexpectssalesof$770,$860,$950,and$960forthemonthsofMaythroughAugust,respectively.Thecompanycollects84percentofsalesinthemonthofsale,13percentinthemonthfollowingthemonthofsale,and1percentinthesecondmonthfollowingthemonthofsale.Theremainingsalesarenevercollected.HowmuchmoneydoesthecompanyexpecttocollectinthemonthofJuly?A)$918B)$856C)$876D)$874E)$943ThePurpleHousehasprojectedsalesof$38,000,$47,500,$52,700,and$85,000forQuarters1through4ofnextyear,respectively.Inventoryispurchasedat58percentofthesalespriceandispurchasedonequarterpriortothequarterofsale.Theaccountspayableperiodis45days.Theaccountspayablebalanceatthebeginningoftheyearis$72,000.Whatistheamountoftheexpecteddisbursementsforthethirdquarter?A)$29,058B)$39,933C)S40,250D)$34,550E)$28,333NadinesBoutiquehasanaccountspayableperiodof30days.Salesof$3,300,$3,400,$4,600,and$4,100areexpectedforQuarters1through4,respectively.Thecostofgoodssoldisequalto62percentofthenextquarterssales.Theaccountspayablebalanceis$975asofthebeginningofQuarter1,WhatistheamountoftheprojectedcashdisbursementsforaccountspayableforQuarter2ofnextyear?Assumeayearhas360days.A)$2,645B)$2,486C)$2,567D)$2,604E)$2,670Kid'sDelightexpectstosell$135,900oftoysinDecember,S64,700inJanuary,$74,400inFebruary,and$56,800inMarch.Thewholesalecostis58percentoftheretailprice.Thereceivablesperiodis30days,thepayablesperiodis60days,andallinventoryispurchasedonemonthpriortosellingit.WhatistheaccountspayablebalanceattheendofFebruary?Assumeayearhas360days.A)$74,544B)$80,678C)$79,327D)$76,168E)$76,096Asofthebeginningofthequarter,Callahanshadacashbalanceof$710,Duringthequarter,thecompanycollected$1,860fromcustomersandpaidsuppliers$1,520.Thecompanyalsopaidaloanpaymentof$320andataxpaymentof$510,W