Busn 379 – week 7 shortterm funding and management homework es

 

Connect with a professional writer in 5 simple steps

Please provide as many details about your writing struggle as possible

Academic level of your paper

Type of Paper

When is it due?

How many pages is this assigment?

If you are looking for something else, email me at [email protected] 

 

1. (TCO 2) Select any actions that do not affect the cash account. Select all that apply: (Points : 3)

         Goods are sold on credit 

         An interest payment on a notes payable is made 

         Raw materials are purchased and paid for with credit 

         A new machine is purchased and paid for with the business line of credit 

 

 

Question 2.2. (TCO 2) Which one of the following will increase the operating cycle? (Points : 3)

        increasing the accounts payable period

        decreasing the accounts payable turnover rate

        decreasing the cash cycle

        increasing the accounts receivable turnover rate

        increasing the inventory period

 

 

Question 3.3. (TCO 2) Assume Green Leaf Nursery anticipated sales of $630 in the first quarter. Accounts receivable at the beginning of the year was $373. Assuming a collection period of 60 days, which is the approximate cash collection for the quarter? (Points : 3)

        $420

        $607

        $590

        $580

        None of the above 

 

 

Question 4.4. (TCO 2) Best Environment Engineering wrote a check and mailed it to the Electric Co. When the Electric Co. went to deposit the check, it discovered that the bank was closed due to flooding in the area. It was 5 days before the Electric Co. could deposit the check from Best Environment Engineering. Because the Electric Co.’s bank was closed: (Points : 3)

        Best Environment’s collection float decreased.

        the Electric Co.’s collection float decreased.

        Best Environment’s disbursement float increased.

        the Electric Co.’s disbursements float increased.

        the ledger balance of Best Environment was less than it would have been otherwise.

 

 

Question 5.5. (TCO 2) Which of the following statements is false? Select all that apply: (Points : 3)

         The optimal credit policy minimizes the total cost of granting credit. 

         Firms should avoid offering credit at all cost. 

         An increase in a firm’s average collection period generally indicates that an increased number of customers are taking advantage of the cash discount. 

         The costs of the credit application process and the costs expended in the collection process are carrying costs of granting credit. 

         Character refers to the ability of a firm to meet its credit obligations out its operating cash flows. 

 

 

Question 6.6. (TCO 2) You place an order for 100 units of inventory Part A at a unit price of $522. The supplier offers terms of 1/25, net 40. How much should you remit if you take the discount? (Points : 3)

        $52,200

        $39,150

        $51,678

        None of the above

 

 

Question 7.7. (TCO 2) Auto Parts sells 1,200 electric parts per week and then reorders another 1,200 parts. If the relevant carrying cost per electric part is $4 and the fixed order cost is $750, what is the total carrying cost and the restocking cost, respectively? (Points : 3)

        $2,400 and $39,900

        $3,200 and $33,800

        $2,400 and $39,000

        $3,400 and $30,000

        None of the above

 

 

Question 8.8. (TCO 2) Company ABC has expected sales of 12,000 units this year, an ordering cost of $6 per order and carrying costs of $1.60 per unit. What is the average inventory? (Points : 3)

        310 units

        300 units

        150 units

        155 units

        None of the above

 

 

Question 9.9. (TCO 2) The _________ is the time it takes to acquire and sell inventory. (Points : 3)

        cash cycle

        operating cycle

        inventory period

        accounts receivable period

        accounts payable period

 

 

Question 10.10. (TCO 2) List three ways in which the firm can expedite payments and accounts receivables. (Points : 3)