公司理财 习题库 Chap019

CHAPTER19Short-TermFinanceandPlanningI.DEFINITIONSOPERATINGCYCLEa1.Thelengthoftimebetweentheacquisitionofinventoryandthecollectionofcashfromreceivablesiscalledthe:a.operatingcycle.b.inventoryperiod.c.accountsreceivableperiod.d.accountspayableperiod.e.cashcycle.INVENTORYPERIODb2.Thelengthoftimebetweentheacquisitionofinventoryanditssaleiscalledthe:a.operatingcycle.b.inventoryperiod.c.accountsreceivableperiod.d.accountspayableperiod.e.cashcycle.ACCOUNTSRECEIVABLEPERIODc3.Thelengthoftimebetweenthesaleofinventoryandthecollectionofcashfromreceivablesiscalledthe:a.operatingcycle.b.inventoryperiod.c.accountsreceivableperiod.d.accountspayableperiod.e.cashcycle.ACCOUNTSPAYABLEPERIODd4.Thelengthoftimebetweentheacquisitionofinventorybyafirmandthepaymentbythefirmforthatinventoryiscalledthe:a.operatingcycle.b.inventoryperiod.c.accountsreceivableperiod.d.accountspayableperiod.e.cashcycle.CASHCYCLEe5.Thelengthoftimebetweenthepaymentforinventoryandthecollectionofcashfromreceivablesiscalledthe:a.operatingcycle.b.inventoryperiod.c.accountsreceivableperiod.d.accountspayableperiod.e.cashcycle.CARRYINGCOSTSa6.Costsofthefirmthatrisewithincreasedlevelsofinvestmentinitscurrentassetsarecalled_____costs.a.carryingb.shortagec.orderd.safetye.tradingSHORTAGECOSTSb7.Costsofthefirmthatfallwithincreasedlevelsofinvestmentinitscurrentassetsarecalled_____costs.a.carryingb.shortagec.debtd.equitye.payablesCASHBUDGETc8.Theforecastofcashreceiptsanddisbursementsforthenextplanningperiodiscalleda:formaincomestatement.b.statementofcashflows.c.cashbudget.d.receivablesanalysis.e.creditanalysis.LINEOFCREDITd9.Aprearranged,short-termbankloanmadeonaformalorinformalbasis,andtypicallyreviewedforrenewalannually,iscalleda:pensatingbalance.d.lineofcredit.e.roll-over.REVOLVINGCREDITARRANGEMENTe10.Aprearrangedcreditagreementwithabanktypicallyopenfortwoormoreyearsiscalleda:pensatingbalance.d.lineofcredit.e.revolvingcreditarrangement.COMPENSATINGBALANCEa11.Afractionoftheavailablecreditonaloanagreementdepositedbytheborrowerwiththebankinalowornon-interest-bearingaccountiscalleda:pensatingbalance.b.cleanuploan.c.letterofcredit.d.lineofcredit.e.roll-over.LETTEROFCREDITc12.A_____pensatingbalanceb.cleanuploanc.letterofcreditd.lineofcredite.revolverASSIGNEDRECEIVABLESb13.Ashort-termloanwherethelenderholdstheborrower’sreceivablesassecurityiscalled:a.acompensatingbalance.b.assignedreceivablesfinancing.c.aletterofcredit.d.factoredreceivablesfinancing.e.abond.FACTOREDRECEIVABLESd14.Atypeofshort-termloanwheretheborrowersellsitsreceivablestothelenderup-front,butatadiscounttofacevalue,iscalled:a.acompensatingbalance.b.assignedreceivablesfinancing.c.aletterofcredit.d.factoredreceivablesfinancing.e.abond.INVENTORYLOANSe15.Ashort-termloansecuredbytheborrower’sinventory,eitherdirectlyorviaanintermediary,iscalleda(n):a.debenture.b.lineofcredit.c.banker’pensatingbalance.e.inventoryloan.II.CONCEPTSSOURCESANDUSESOFCASHe16.Whichoneofthefollowingisasourceofcash?a.anincreaseinaccountsreceivableb.anincreaseinfixedassetsc.adecreaseinlong-termdebtd.thepaymentofacashdividende.anincreaseinaccountspayableSOURCESANDUSESOFCASHb17.Whichofthefollowingareusesofcash?I.marketablesecuritiesaresoldII.theamountofinventoryonhandisincreasedIII.thefirmtakesoutalong-termbankloanIV.paymentsarepaidonaccountspayablea.IandIIIonlyb.IIandIVonlyc.IandIVonlyd.IIandIIIonlye.II,IIIandIVonlyNETWORKINGCAPITALe18.Whichoneofthefollowingwillincreasenetworkingcapital?Assumethatthecurrentratioisgreaterthan1.0.a.usingcashtopayanaccountspayableb.usingcashtopayalong-termdebtc.sellinginventoryatcostd.collectinganaccountsreceivablee.usingalong-termloantobuyinventoryNETWORKINGCAPITALc19.Whichoneofthefollowingwilldecreasethenetworkingcapitalofafirm?Assumethatthecurrentratioisgreaterthan1.0.a.sellinginventoryataprofitb.collectinganaccountsreceivablec.payingapaymentonalong-termdebtd.sellingafixedassetforbookvaluee.payinganaccountspayableOPERATINGCYCLEd20.Whichoneofthefollowingwilldecreasetheoperatingcycle?a.payingaccountspayablefasterb.discontinuingthediscountgivenforearlypaymentofanaccountsreceivablec.decreasingtheinventoryturnoverrated.collectingaccountsreceivablefastere.increasingtheaccountspayableturnoverrateOPERATINGCYCLEa21.Whichoneofthefollowingwilldecreasetheoperatingcycle?a.decreasingthedayssalesininventoryb.decreasingthedaysinaccountspayablec.decreasingthecashcyclebyincreasingtheaccountspayableperiodd.decreasingtheaccountsreceivableturnoverratee.decreasingthespeedatwhichinventoryissoldOPERATINGCYCLEc22.Theoperatingcycledescribeshowaproduct:a.ispriced.b.issold.c.movesthroughthecurrentassetaccounts.d.movesthroughtheproductionprocess.e.generatesaprofit.OPERATINGCYCLEa23.Whichoneofthefollowingwillnotaffecttheoperatingcycle?a.decreasingthepayablesturnoverfrom7timesto6timesb.increasingthedayssalesinreceivablesc.decreasingtheinventoryturnoverrated.increasingtheaveragereceivablesbalancee.decreasingthecreditrepaymenttimesforthefirm’scustomersCASHCYCLEd24.Whichoneofthefollowingwillincreasethecashcycle?a.improvingthecashdiscountsgiventocustomerswhopaytheiraccountearlyb.havingalargerpercentageofcustomerspayingwithcashinsteadofcreditc.buyinglessrawmaterialstohaveonhandd.payingyoursuppliersearliertoreceivethediscounttheyoffere.orderingrawmaterialsinventoryonlywhenyouneeditCASHCYCLEd25.Anincreaseinwhichoneofthefollowingwilldecreasethecashcycle,allelseequal?a.payablesturnoverb.dayssalesininventoryc.operatingcycled.inventoryturnoverratee.accountsreceivableperiodCASHCYCLEd26.ABCManufacturinghistoricallyproducedproductsthatwereheldininventoryuntiltheycouldbesoldtoacustomer.Thefirmisnowchangingtheirpolicyandonlyproducingaproductwhentheyreceiveanactualorderfromacustomer.Allelseequal,thischangewill:a.increasetheoperatingcycle.b.lengthentheaccountsreceivableperiod.c.shortentheaccountspayableperiod.d.decreasethecashcycle.e.decreasetheinventoryturnoverrate.CASHCYCLEb27.Whichoneofthefollowingstatementsconcerningthecashcycleiscorrect?a.Thecashcycleisequaltotheoperatingcycleminustheinventoryperiod.b.Anegativecashcycleisactuallypreferabletoapositivecashcycle.c.Grantingcredittoslowerpayingcustomerstendstodecreasethecashcycle.d.Thecashcycleplustheaccountsreceivableperiodisequaltotheoperatingcycle.e.Themostdesirablecashcycleistheonethatequalszerodays.CASHCYCLEa28.Whichoneofthefollowingstatementsiscorrectconcerningthecashcycle?a.Thelongerthecashcycle,themorelikelyafirmwillneedexternalfinancing.b.Increasingtheaccountspayableperiod,increasesthecashcycle.c.Apositivecashcycleispreferabletoanegativecashcycle.d.Thecashcyclecanexceedtheoperatingcycleifthepayablesperiodisequaltozero.e.Adoptingamoreliberalaccountsreceivablepolicywilltendtodecreasethecashcycle.INVENTORYPERIODe29.Whichofthefollowingactionswilltendtodecreasetheinventoryperiod?I.discontinuingallslow-sellingmerchandiseII.sellingobsoleteinventorybelowcostjusttogetridofitIII.buyingrawmaterialsonlyastheyareneededinthemanufacturingprocessIV.producinggoodsondemandversusforinventorya.IandIIIonlyb.IIandIVonlyc.II,IIIandIVonlyd.I,IIandIIIonlye.I,II,IIIandIVACCOUNTSRECEIVABLEPERIODd30.Whichofthefollowingactionswilltendtodecreasetheaccountsreceivableperiod?I.looseningthestandardsforgrantingcredittocustomersII.increasingthediscountforearlypaymentbycreditcustomersIII.increasingthefinancechargesappliedtoallcustomerbalancesoutstandingoverthirtydaysIV.grantingdiscountsforcashsalesa.IandIIIonlyb.IIandIVonlyc.I,IIandIVonlyd.II,IIIandIVonlye.I,II,IIIandIVACCOUNTSRECEIVABLEPERIODb31.Anincreaseinwhichoneofthefollowingismostapttobeanindicatorofanaccountsreceivablepolicythatistoorestrictive?a.baddebtsb.accountsreceivableturnoverratec.accountsreceivableperiodd.creditsalese.operatingcycleACCOUNTSPAYABLEPERIODb32.Ifyoudelaypayingyoursuppliersbyanadditionaltendays,then:a.yourpayablesturnoverratewillincrease.b.youwillrequirelessbankfinancingofyouroperations.c.thecashcyclewillincreasebytendays.d.youroperatingcyclewilllengthenbytendays.e.yourstock-outcostswillrise.ACCOUNTSPAYABLEPERIODb33.Whichoneofthefollowingwillincreasetheaccountspayableperiod,allelseconstant?a.anincreaseinthecostofgoodssoldaccountvalueb.anincreaseintheendingaccountspayablebalancec.anincreaseinthecashcycled.adecreaseintheoperatingcyclee.adecreaseintheaverageaccountspayablebalanceSHORT-TERMFINANCIALMANAGEMENTb34.Whichoneofthefollowingmanagersismostlikelyinchargeofestablishingtheaccountsreceivablepolicy?ductionmanagere.payablesmanagerSHORT-TERMFINANCIALMANAGEMENTa35.Themanagerresponsiblefortheaccountinginformationconcerningcashflowsisthe:ductionmanager.SHORT-TERMFINANCIALPOLICYd36.Flexibleshort-termfinancialpoliciestendto:a.maintainlowaccountsreceivablebalances.b.supportfewinvestmentsinmarketablesecurities.c.minimizetheinvestmentininventory.d.maintainlargecashbalances.e.tightlyrestrictcreditsales.SHORT-TERMFINANCIALPOLICYa37.Arestrictiveshort-termfinancialpolicytendsto:a.reducefuturesalesmoresothanaflexiblepolicy.b.grantcredittomorecustomers.c.incurmorecarryingcoststhanaflexiblepolicydoes.d.encouragecreditsalesovercashsales.e.reduceordercostsascomparedtoamoreflexiblepolicy.SHORT-TERMFINANCIALPOLICYd38.Whichofthefollowingareassociatedwitharestrictiveshort-termfinancialpolicy?I.largeinvestmentsinmarketablesecuritiesII.liberalcredittermsforcustomersIII.minimalcashbalancesIV.minimalcreditsalesa.IandIIIonlyb.IIandIVonlyc.IIandIVonlyd.IIIandIVonlye.I,IIandIIIonlySHORT-TERMFINANCIALPOLICYa39.Arestrictiveshort-termfinancialpolicy,ascomparedtoamoreflexiblepolicy,tendsto:I.causeafirmtolosesalesduetoalackofinventoryonhand.II.increasethesalesofafirmduetothefirm’screditavailabilityandterms.III.increasetheprobabilitythatafirmwillfaceacash-outsituation.IV.increasetheabilityofafirmtochargepremiumprices.a.IandIIIonlyb.IIandIVonlyc.IandIVonlyd.IIandIIIonlye.IandIIonlySHORT-TERMFINANCIALPOLICYa40.Aflexibleshort-termfinancialpolicy:a.isassociatedwithfirmswherethecarryingcostsareconsideredtobelessthantheshortagecosts.b.appliesmostlytofirmswheretheshortagecoststendtobelessthanthecarryingcosts.c.appliesonlytofirmsthatstrictlylimittheircreditsales.d.tendstodecreasetheamountofcurrentassetsheldbyafirm.e.isdesignedtoutilizeshort-termexternalfinancingtofundalloftheseasonalincreasesincurrentassets.SHORT-TERMFINANCIALPOLICYb41.Aflexibleshort-termfinancialpolicy:a.increasesthelikelihoodthatafirmwillfacefinancialdistress.b.incursanopportunitycostduetotherateofreturnthatappliestoshort-termassets.c.advocatesasmallerinvestmentinnetworkingcapitalthanarestrictivepolicydoes.d.increasestheprobabilitythatafirmwillearnhighreturnsonallofitsassets.e.utilizesshort-termfinancingtofundallofthefirm’sassets.CASHCOLLECTIONSe42.Ifyouraccountsreceivableperiodis30days,youwillcollectpaymentforyour_____salesduringthesecondquarterofacalendaryear.a.JanuaryandFebruaryb.January,FebruaryandMarchc.FebruaryandMarchd.February,MarchandAprile.March,AprilandMayCASHCOLLECTIONSd43.Yourfirmcollects30percentofsalesinthemonthofsale,55percentofsalesinthemonthfollowingthemonthofsaleand13percentofsalesinthesecondmonthfollowingthemonthofsale.Giventhis,youwillcollect_____salesduringthemonthofJune.a.30percentofMayb.55percentofJunec.13percentofMayd.55percentofMaye.13percentofMarchCASHCOLLECTIONSb44.Amanufacturingfirmhasa90daycollectionperiod.Thefirmproducesseasonalmerchandiseandthushastheleastsalesduringthefirstquarterofayearandthehighestlevelofsalesduringthethirdquarterofayear.Thefirmmaintainsarelativelysteadylevelofproductionwhichmeansthatitscashdisbursementsarefairlyequalinallquarters.Thefirmismostapttofaceacash-outsituationin:a.thefirstquarter.b.thesecondquarter.c.thethirdquarter.d.thefourthquarter.e.anyquarter,equally.CASHDISBURSEMENTSa45.Whichoneofthefollowingsentencesiscorrectaboutamanufacturingfirmwithseasonalsales?a.Thecashflowsforthefixedexpensestendtoremainrelativelystablefromonequartertothenext.b.Purchasesofrawmaterialsarenormallypaidforatthetimeofpurchase.c.Theprimarysupplierstothefirmarenormallypaid30dayspriortosupplyingtheirgoodstothefirm.d.Capitalexpenditurestendtoberelativelyconstantthroughoutthecourseofayear.e.Thetotalcashdisbursementstendtoberelativelyconstanteachquartereventhoughthecashcollectionsvaryconsiderably.CASHDISBURSEMENTSb46.Whichtwoofthefollowingfourconditionsaremostapttocauseaquarterlycashshortfallforafirmwhichisfinanciallysound?I.arelativelyconstantlevelofsalesII.periodicexpendituresformajorequipmentpurchasesIII.asteadydependenceonaconstantlevelofexternalfinancingIV.highlyseasonalsalesa.IandIIIonlyb.IIandIVonlyc.IIIandIVonlyd.I,IIandIIIonlye.II,IIIandIVonlyCASHBALANCEc47.Whichofthefollowingstatementsarecorrectconcerningthecashbalanceofafirm?I.Mostfirmsplanonmaintainingaminimumcashbalanceatalltimes.II.Thecumulativecashsurplusshownonacashbudgetisequaltotheendingcashbalanceplustheminimumcashbalanceretainedbythefirm.III.ThecumulativecashsurplusattheendofMarchisusedasthebeginningcashbalanceforAprilwhenyouarecompilingaprojectedmonthlycashbalancereport.IV.Anegativecumulativecashsurplusindicatesaborrowingneedbythefirm.a.IandIIIonlyb.IIandIVonlyc.IandIVonlyd.IIandIIIonlye.IandIIonlyCASHBALANCEa48.Acumulativecashdeficitindicatesthatafirm:a.hasatleastashort-termneedforexternalfunding.b.isfacinglong-termfinancialdistress.c.willgooutofbusinesswithintheyear.d.iscapableoffundingallofitsneedsinternally.e.isusingitscashwisely.SHORT-TERMBORROWINGe49.Themostcommonmeansoffinancingatemporarycashdeficitisa:a.long-termsecuredbankloan.b.short-termsecuredbankloan.c.short-termissueofcorporatebonds.d.long-termunsecuredbankloan.e.short-termunsecuredbankloan.SHORT-TERMBORROWINGb50.Theprimarydifferencebetweenalineofcreditandarevolvingcreditarrangementisthe:a.typeofcollateralusedtosecuretheloan.b.lengthofthetimeperiodcoveredbytheloanagreement.c.factthatthelineofcreditisasecuredloanandtherevolvingcreditarrangementisunsecured.d.factthatthelineofcreditisanunsecuredloanandtherevolvingcreditarrangementise.lineofcreditisalong-termfinancingagreementwhiletherevolvingcreditarrangementisashort-termfinancingagreement.SHORT-TERMBORROWINGsecured.b51.Acompensatingbalance:I.isrequiredwhenafirmacquiresbankfinancingotherthanalineofcredit.II.increasesthecostofshort-termbankfinancing.III.representsanopportunitycosttothelendinginstitution.IV.isoftenusedasameansofpayingforbankingservicesreceived.a.IandIIIonlyb.IIandIVonlyc.IIandIIIonlyd.IandIVonlye.I,IIandIVonlySHORT-TERMBORROWINGb52.TheWestwardHo!Companyhas$100,000inaccountsreceivable.TofundapurchaseofequipmentthecompanyassignsthesereceivablestoTheCornerBank.Whichoneofthefollowingstatementsistruegiventhisarrangement?a.WestwardHo!willimmediatelyreceive$100,000anddoesnothavetobeconcernedanyfurtherwiththereceivables.b.WestwardHo!willreceivesomeamountofcashimmediatelywhilemaintainingfullresponsibilityforanyaccountthatisnotcollected.c.TheCornerBankacceptsfullresponsibilityforthecollectionoftheaccountsandinexchangepaysWestwardHo!anamountthatislessthan$100,000.d.TheCornerBankacceptsresponsibilityforcollectingtheaccountsreceivableandpaysWestwardHo!adiscountedpriceafterthenormalcollectionperiodhaselapsed.e.WestwardHo!sellstheaccountsatadiscountedpriceandreceivesthesalepriceimmediately.SHORT-TERMBORROWINGd53.Whichoneofthefollowingstatementsiscorrect?a.Afarmergenerallyusesatypeoffinancingthatemploystrustreceiptstoprovidefinancingduringthegrowingseason.b.Athird-partyinventorymanagerisgenerallyinvolvedwiththelenderandtheborrowerinafloorplanarrangement.c.Adrugstoreismoreapttohaveafinancingarrangementinvolvingtrustreceiptsthanoneinvolvingablanketlien.d.Floorplanarrangementsaremostapplicabletolarge,easilyidentifiabletypesofinventory.e.Adirectloanfromabankisgenerallylessexpensivethanaloaninvolvingcommercialpaper.SHORT-TERMFINANCIALPLANe54.Whichofthefollowingarebenefitsofcompilingashort-termfinancialplan?I.knowingaheadoftimewhenyourfirmwillprobablyrequireexternalfinancingII.beingabletoestimatehowlongofatimeperiodyourfirmmightneedaloanIII.beingabletodeterminewhenyourfirmcanbestaffordtospendfundsonacapitalexpenditureIV.knowingwhenyourfirmshouldhaveexcessfundsthatcanbeinvesteda.IandIIIonlyb.I,IIandIVonlyc.II,IIIandIVonlyd.I,IIandIIIonlye.I,II,IIIandIVIII.PROBLEMSINVENTORYPERIODe55.StoneyBrooke,Inc.hassalesof$890,000andcostofgoodssoldof$640,000.Thefirmhadabeginninginventoryof$36,000andanendinginventoryof$46,000.Whatisthelengthoftheinventoryperiod?a.15.24daysb.15.61daysc.21.19daysd.21.71dayse.23.38daysINVENTORYPERIODb56.Yourfirmhassalesof$628,000andcostofgoodssoldof$402,000.Atthebeginningoftheyear,yourinventorywas$31,000.Attheendoftheyear,theinventorybalancewas$33,000.Whatistheinventoryturnoverrate?a.11.23timesb.12.56timesc.18.60timesd.19.63timese.29.06timesINVENTORYPERIODb57.Afirmhassalesof$720,000.Thecostofgoodssoldisequalto70percentofsales.Thefirmhasanaverageinventoryof$6,500.Howmanydaysonaveragedoesittakethefirmtosellitsinventory?a.3.30daysb.4.71daysc.67.29daysd.77.54dayse.110.77daysACCOUNTSRECEIVABLEPERIODa58.BiltRite,Inc.hassalesof$610,000.Thecostofgoodssoldisequalto70percentofsales.Thebeginningaccountsreceivablebalanceis$21,000andtheendingaccountsreceivablebalanceis$25,000.Howlongonaveragedoesittakethefirmtocollectitsreceivables?a.13.76daysb.14.09daysc.21.07daysd.25.98dayse.26.52daysACCOUNTSRECEIVABLEPERIODb59.Weson,Inc.hassalesof$462,000,costsofgoodssoldof$308,000andaverageaccountsreceivableof$48,900.Howlongdoesittaketheircreditcustomerstopayfortheirpurchases?a.36.09daysb.38.63daysc.41.23daysd.44.20dayse.57.95daysACCOUNTSPAYABLEPERIODe60.LoDo,Inc.hassalesof$642,000andaverageaccountspayableof$36,400.Thecostofgoodssoldisequivalentto65percentofsales.HowlongdoesittakeLoDotopaytheirsuppliers?a.11.46daysb.13.45daysc.20.69daysd.26.18dayse.31.84daysACCOUNTSPAYABLEPERIODa61.TrueBlueStoreshadabeginningaccountspayablebalanceof$56,900andanendingaccountspayablebalanceof$62,800.Salesfortheperiodwere$670,000andcostsofgoodssoldwere$418,000.Whatisthepayablesturnoverrate?a.6.98timesb.7.35timesc.8.13timesd.11.19timese.11.78timesOPERATINGCYCLEb62.Afirmhasaninventoryturnoverrateof16,areceivablesturnoverrateof21andapayablesturnoverrateof11.Howlongistheoperatingcycle?a.37.00daysb.40.19daysc.42.87daysd.63.08dayse.73.37daysOPERATINGCYCLEe63.Yourfirmcurrentlyhasanoperatingcycleof64days.Youareanalyzingsomeoperationalchangeswhichareexpectedtodecreasetheaccountsreceivableperiodby3daysanddecreasetheinventoryperiodby2days.Theaccountspayableturnoverrateisexpectedtoincreasefrom7to9timesperyear.Ifallofthesechangesareadopted,whatwillyourfirm’snewoperatingcyclebe?a.47daysb.51daysc.54daysd.57dayse.59daysOPERATINGCYCLEd64.DallasandMore(D&M)sellstheirinventoryin82daysonaverage.Theiraveragecustomerchargestheirpurchaseonacreditcardwherebypaymentisreceivedintendays.Ontheotherhand,D&Mtakes56daysonaveragetopayfortheirpurchases.Giventhisinformation,whatisthelengthofD&M’soperatingcycle?a.26daysb.36daysc.66daysd.92dayse.128daysOPERATINGCYCLEb65.JaxsonandSonshasaninventoryperiodof33days,anaccountspayableperiodof41daysandanaccountsreceivableperiodof27days.Managementisconsideringofferinga5percentdiscountiftheircreditcustomerspayfortheirpurchaseswithin10days.Ifthenewdiscountisofferedtheaccountsreceivableperiodisexpectedtodeclineby13days.Ifthenewdiscountisoffered,theoperatingcyclewilldecreasefrom_____daysto_____days.a.19;6b.60;47c.87;74d.101;88e.101;91CASHCYCLEe66.Wislon,Inc.hasaninventoryturnoverrateof15,anaccountspayableperiodof54daysandanaccountsreceivableperiodof37days.Whatisthelengthofthecashcycle?a.-7.33daysb.-2.00daysc.2.00daysd.6.50dayse.7.33daysCASHCYCLEa67.Drefus,Inc.hasaninventoryturnoverof15andanaccountsreceivableturnoverof9.Theaccountspayableperiodis51days.Whatisthelengthofthecashcycle?a.13.89daysb.14.07daysc.14.23daysd.18.79dayse.23.00daysCASHCYCLEc68.Afirmcurrentlyhasa36daycashcycle.Assumethatthefirmchangesitsoperationssuchthatitdecreasesitsreceivablesperiodby4days,increasesitsinventoryperiodby1dayanddecreasesitspayablesperiodby2days.Whatwillthelengthofthecashcyclebeafterthesechanges?a.31daysb.33daysc.35daysd.37dayse.38daysCASHCYCLEc69.Afirmcurrentlyhasa43daycashcycle.Assumethatthefirmchangesitsoperationssuchthatitincreasesitsreceivablesperiodby2days,decreasesitsinventoryperiodby1dayandincreasesitspayablesperiodby3days.Whatwillthelengthofthecashcyclebeafterthesechanges?a.38daysb.39daysc.41daysd.43dayse.45daysCASHCOLLECTIONSd70.MartinqueandSonhavea60daycollectionperiod.Salesforthenextcalendaryearareestimatedat$1,200,$1,100,$2,300and$1,800,respectively,byquarterstartingwiththefirstquarteroftheyear.Giventhisinformation,whichoneofthefollowingstatementsiscorrect?Assumethatayearhas360days.a.Thefirmwillcollect$1,133inQuarter2.b.TheaccountsreceivablebalanceatthebeginningofQuarter4willbe$767.c.Thefirmwillcollect$367fromQuarter2salesinQuarter3.d.Thefirmwillhaveanaccountsreceivablebalanceof$1,200attheendoftheyear.e.Thefirmwillcollectatotalof$1,967inQuarter4.CASHCOLLECTIONSa71.ABC,Inc.hasabeginningreceivablesbalanceonJanuary1stof$430.SalesforJanuarythroughAprilare$240,$250,$330and$350,respectively.Theaccountsreceivableperiodis60days.HowmuchdidthefirmcollectinthemonthofMarch?Assumethatayearhas360days.a.$240b.$250c.$330d.$350e.$430CASHCOLLECTIONSc72.SmithandJohnsonhaveexpectedsalesof$380,$340,$430and$480forthemonthsofJanuarythroughApril,respectively.Theaccountsreceivableperiodis15days.HowmuchdidthefirmcollectinthemonthofMarch?Assumethatayearhas360days.a.$340b.$360c.$385d.$430e.$455CASHCOL