公司理財(cái)精要版原書第12版習(xí)題庫(kù)答案Ross12e-Chapter18-TB

FundamentalsofCorporateFinance,(1R2oess)Chapter18Short-TermFinanceandPlanningWhichoneofthefollowingactionsrepresentsasourceofcash?GrantingcredittoacustomerPurchasingnewmachineryMakingapaymentonabankloanPurchasinginventoryAcceptingcreditfromasupplierWhichoneoftheseactionsrepresentsauseofcash?CollectingareceivablePayingemployeewagesSellinginventoryforcashObtainingabankloanPurchasinginventoryoncreditWhichoneoftheseactivitiesrepresentsasourceofcash?IncreasingaccountsreceivableDecreasinginventoryIncreasingfixedassetsDecreasingaccountspayableDecreasingcommonstockWhichoneofthefollowingactionswillincreasenetworkingcapital?Assumethecurrentratioisgreaterthan1.0.PayingasupplierforapreviouspurchasePayingoffalong-termdebtSellinginventoryatcostforcashPurchasinginventoryoncreditSellinginventoryataprofitoncreditWhichoneofthefollowingwilldecreasenetworkingcapital?Assumethecurrentratioisgreaterthan1.0.SellinginventoryatcostCollectingpaymentfromacustomerPayingadividendtoshareholdersSellingafixedassetforlessthanbookvaluePayingasupplierforpriorpurchasesWhichoneoftheseactionswillincreasetheoperatingcycle?Assumeallelseheldconstant.DecreasingthepayablesperiodDecreasingthereceivablesturnoverrateIncreasingthepayablesperiodDecreasingtheaverageinventorylevelIncreasingtheinventoryturnoverrateTheoperatingcycleisequaltothe:cashcycleplustheaccountsreceivableperiod.inventoryperiodplustheaccountsreceivableperiod.inventoryperiodplustheaccountspayableperiod.accountspayableperiodminusthecashcycle.accountspayableperiodplustheaccountsreceivableperiod.Whichoneofthefollowingwilldecreasetheoperatingcycle?DecreasingtheinventoryturnoverrateDecreasingtheaccountspayableperiodIncreasingtheaccountsreceivableturnoverrateIncreasingtheaccountspayableperiodIncreasingtheaccountsreceivableperiodTheoperatingcycledescribeshowaproduct:ispriced.issold.movesthroughthecurrentassetaccounts.movesthroughtheproductionprocess.generatesaprofit.Whichoneoftheseaffectsthelengthofthecashcyclebutnottheoperatingcycle?InventoryperiodAccountspayableperiodBoththeaccountsreceivableandinventoryperiodsAccountsreceivableperiodBoththeaccountsreceivableandtheaccountspayableperiodsWhichoneofthesewilldecreasethecashcycle,allelseheldconstant?IncreasingtheaccountsreceivableturnoverrateDecreasingtheaccountspayableperiodIncreasingtheinventoryperiodDecreasingtheinventoryturnoverrateIncreasingtheaccountsreceivableperiodAdecreaseinwhichoneofthefollowingwillincreasethecashcycle,allelseheldconstant?PayablesturnoverDayssalesininventoryOperatingcycleInventoryturnoverrateAccountsreceivableperiodMetalDesignshistoricallyproducedproductsforinventory.Now,theyonlyproduceaproductwhenanactualorderisreceivedfromacustomer.Allelseequal,thischangewill:increasetheoperatingcycle.lengthentheaccountsreceivableperiod.shortentheaccountspayableperiod.decreasethecashcycle.decreasetheinventoryturnoverrate.Whichoneofthesestatementsiscorrect?Assumeallelseheldconstant.Adecreaseintheaccountsreceivableturnoverratedecreasesthecashcycle.Thecashcycleisequaltotheoperatingcycleminustheinventoryperiod.Anegativecashcycleispreferabletoapositivecashcycle.Adecreaseintheaccountspayableperiodshortensthecashcycle.Thecashcycleplustheaccountsreceivableperiodisequaltotheoperatingcycle.Whichoneofthefollowingstatementsiscorrectconcerningthecashcycle?Thelongerthecashcycle,themorelikelyacompanywillneedexternalfinancing.Increasingtheaccountspayableperiodincreasesthecashcycle.Acceptingasupplier'sdiscountforearlypaymentdecreasesthecashcycle.Thecashcyclecanexceedtheoperatingcycleifthepayablesperiodisequaltozero.Offeringearlypaymentdiscountstocustomerswilltendtoincreasethecashcycle.Whichoneofthefollowingactionswilltendtoincreasetheinventoryperiod?Discontinuingallslow-sellingmerchandiseSellingobsoleteinventorybelowcostjusttogetridofitBuyingrawmaterialsonlyasneededforthemanufacturingprocessProducinggoodsondemandversusforinventoryIncreasinginventoryselectiontoattractmorecustomersWhichoneofthefollowingactionswilltendtoincreasetheaccountsreceivableperiodfromitscurrent14days?TighteningthestandardsforgrantingcredittocustomersRefusingtograntadditionalcredittoanycustomerwhopayslateIncreasingthefinancechargesappliedtoallcustomerbalancesoutstandingover30daysGrantingdiscountsforcashsalesEliminatingthediscountforearlypaymentbycreditcustomersAnincreaseinwhichoneofthefollowingisanindicatorthatanaccountsreceivablepolicyisbecomingmorerestrictive?BaddebtsAccountsreceivableturnoverrateAccountsreceivableperiodCreditsalesOperatingcycleAssumeallelseheldconstant.Ifyoupayyoursuppliersthreedayssooner,then:yourpayablesturnoverratewilldecrease.youmayrequireadditionalfundsfromothersourcestofundthecashcycle.thecashcyclewilldecrease.youroperatingcyclewilldecrease.theaccountsreceivableperiodwilldecrease.Whichoneofthefollowingwillincreasetheaccountspayableperiod,allelseheldconstant?AdecreaseintheinventoryperiodAnincreaseintheendingaccountspayablebalanceAnincreaseinthecashcycleAdecreaseintheoperatingcycleAnincreaseintheaccountspayableturnoverrateWhichoneofthefollowingmanagersdetermineswhichcustomersmustpaycashandwhichcanchargetheirpurchases?PurchasingmanagerCreditmanagerControllerProductionmanagerPayablesmanagerWhichoneofthefollowingmanagersdetermineswhenasupplierwillbepaid?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?February,March,andAprilApril,MayandJuneDecember,January,andFebruaryJanuary,February,andMarchMarch,April,andMayTheHarvestercollects55percentofsalesinthemonthofsale,40percentofsalesinthemonthfollowingthemonthofsale,and5percentofsalesinthesecondmonthfollowingthemonthofsale.DuringthemonthofApril,theywillcollect:55percentofFebruarysales.5percentofAprilsales.40percentofMarchsales.5percentofMarchsales.40percentofFebruarysales.Timkohasa90-daycollectionperiodandproducesseasonalmerchandise.Salesarelowestduringthefirstcalendarquarterofayearandthehighestduringthethirdquarter.Thecompanymaintainsarelativelysteadylevelofproductionwhichmeansthatitscashdisbursementsarefairlyequalinallquarters.Thiscompanyismostapttofaceacash-outsituationin: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.Thisarrangementiscalleda(n):pensatingbalance.lineofcredit.banknote.Moneydepositedbyaborrowerwithabankinalowornon-interest-bearingaccountasaconditionofaloanagreementiscalleda:compensatingbalance.securedcreditdeposit.letterofcredit.lineofcash.pledge.Brustle'sPotteryeitherfactorsorassignsallofitsreceivablestootherfirms.Thisisknownas:accountsreceivablefinancing.pledgedfinancing.capitalfunding.dailyfunding.capitalfinancing.Rose'sGiftShopborrowsmoneyonashort-termbasisbypledgingitsinventoryascollateral.Thisisanexampleofa(n):debenture.lineofcredit.banker'sacceptance.workingloan.inventoryloan.Themostcommonwaytofinanceatemporarycashdeficitiswitha:long-termsecuredbankloan.short-termsecuredbankloan.short-termissueofcorporatebonds.long-termunsecuredbankloan.short-termunsecuredbankloan.Theprimarydifferencebetweenalineofcreditandarevolvingcreditarrangementisthe:typeofcollateralusedtosecuretheloan.lengthofthecreditperiod.factthatthelineofcreditisasecuredloanandtherevolvingcreditarrangementisunsecured.factthatthelineofcreditisanunsecuredloanandtherevolvingcreditarrangementissecured.loan'sclassificationaseitheracommittedoranon-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-termdebtis$4,800.Networkingcapital,otherthancash,is$3,700andfixedassetsare$27,400.Howmuchcashdoesthecompanyhave?$3,900$4,800$4,300$3,400$3,700NewProductshassalesof$749,500andcostofgoodssoldof$368,600.Beginninginventoryis$54,700andendinginventoryis$58,200.Whatisthelengthoftheinventoryperiod?15.01days17.89days55.90days90.53days113.67daysMid-WesternMarketshassalesof$1,389,400andcostsofgoodssoldof$892,700.Beginninginventoryis$94,300andendinginventoryis$110,200.Whatistheinventoryturnoverrate?8.73times10.78times13.59times11.37times12.64timesNorthSideWholesalershassalesof$1,648,900.Thecostofgoodssoldisequalto71percentofsalesandtheaverageinventoryis$75,800.Howmanydaysonaveragedoesittaketoselltheinventory?28.30days23.63days20.48days33.28days21.68daysTheBearRughassalesof$647,000.Thecostofgoodssoldisequalto66percentofsales.Accountsreceivablehasabeginningbalanceof$53,400andanendingbalanceof$49,600.Howlongonaveragedoesittaketocollectthereceivables?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?69.31days68.38days47.13days35.89days36.97daysHGLiverySupplyhasabeginningaccountspayablebalanceof$68,800andanendingaccountspayablebalanceof$72,700.Salesfortheperiodwere$942,800andcostsofgoodssoldwere$534,200.Whatisthepayablesturnoverrate?7.55times8.39times7.02times13.33times12.85timesBradley'shasaninventoryturnoverrateof7.6,apayablesturnoverrateof11.4,andareceivablesturnoverrateof12.6.Howlongistheoperatingcycle?20.20days76.99days70.63days30.13days24.11daysMerylEnterprisescurrentlyhasanoperatingcycleof76.4days.Thecompanyisimplementingsomeoperationalchangesthatareexpectedtoincreasetheaccountsreceivableperiodby2.2days,decreasetheinventoryperiodby5.3days,andincreasetheaccountspayableperiodby1.5days.Whatisthenewoperatingcycleexpectedtobe?78.0days74.8days73.3days79.5days71.8daysOnaverage,Furniture&Moreisabletosellitsinventoryin54.2daysandtakes65.3daysonaveragetopayforitspurchases.Itsaveragecustomerpayswithacreditcardwhichallowsthecompanytocollectitsreceivablesin2.9days.Giventhisinformation,whatisthelengthofoperatingcycle?57.1days88.3days8.2days116.6days122.4daysInteriorDesignshasaninventoryperiodof84.6days,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?35.67days38.48days41.02days46.47days48.81daysPeterson'sAntiquitiescurrentlyhasa32.6-daycashcycle.Assumethecompanychangesitsoperationssuchthatitdecreasesitsreceivablesperiodby3.1days,increasesitsinventoryperiodby1.8days,andincreasesitspayablesperiodby2.2days.Whatwillthelengthofthecashcyclebeafterthesechanges?33.5days36.1days30.2days29.1days27.6daysRossiter'scurrentlyhasacashcycleof43.4days.Assumetheoperationsarechangedsuchthatthereceivablesperioddecreasesby2.6days,theinventoryperiodbyincreasesby1.3days,andthepayablesperiodincreasesby3.4days.Whatwillbethelengthofthecashcycleafterthesechanges?39.2days45.5days38.7days41.3days48.1daysACCorporationhasbeginninginventoryof$11,062,accountspayableof$8,010,andaccountsreceivableof$7,844.Theendofyearvaluesare$11,362forinventory,$7,898foraccountspayable,and$8,029foraccountsreceivable.Netsalesare$109,100andcostsofgoodssoldare$56,220.Howmanydaysareinthecashcycle?47.7days80.2days55.8days97.9days67.8daysWake-UpCoffeehasprojectednextyear'squarterlysalesat$960,$890,$980,and$1,050forQuarters1to4,respectively.Accountsreceivableatthebeginningoftheyearare$212andthecollectionperiodis18days.WhatistheamountoftheaccountsreceivablebalanceattheendofQuarter2?Assumeayearhas360days.$212$207$178$184$167TallGuysClothinghasa30-daycollectionperiod.Salesforthenextcalendaryearareestimatedat$1,950,$2,100,$2,650and$3,200,respectively,byquarter,startingwiththefirstquarteroftheyear.Giventhisinformation,whichoneofthefollowingstatementsiscorrect?Assumeayearhas360days.TheQuarter2collectionswillbe$2,000.TheaccountsreceivablebalanceatthebeginningofQuarter4willbe$940.TheQuarter3collectionswillbe$2,375.TheendofQuarter4accountsreceivablebalancewillbe$2,133.TheQuarter4collectionswillbe$3,017.PlantMarthasabeginningreceivablesbalanceonFebruary1of$1,648.SalesforFebruarythroughMayare$2,670,$2,940,$3,820,and$4,450,respectively.Theaccountsreceivableperiodis15days.WhatistheamountoftheAprilcollections?Assumeayearhas360days.$3,010$3,380$2,805$3,545$3,470S&SSportingGoodshasexpectedsalesof$970,$910,$840,and$920forthemonthsofJanuarythroughApril,respectively.Theaccountsreceivableperiodis33days.WhatistheaccountsreceivablebalanceattheendofFebruary?Assumeeachmonthhas30days.$1,007$989$1,102$910$1,068TheSportsStorehasabeginningreceivablesbalanceonJanuary1of$2,640.SalesforJanuarythroughAprilare$3,440,$3,590,$2,690,and$4,720,respectively.Theaccountsreceivableperiodis45days.HowmuchdidthestorecollectinthemonthofApril?Assumeayearhas360days.$3,515$3,445$3,140$3,690$3,705BreakwaterAquaticshasanaccountsreceivableperiodof36days.Theestimatedquarterlysalesforthisyear,startingwiththefirstquarter,are$6,800,$7,100,$8,200,and$6,400,respectively.Whatistheaccountsreceivablebalanceatthebeginningofthethirdquarter?Assumeayearhas360days.$3,644$2,840$3,308$2,560$3,280TheDogHouseexpectssalesof$770,$860,$950,and$960forthemonthsofMaythroughAugust,respectively.Thecompanycollects84percentofsalesinthemonthofsale,13percentinthemonthfollowingthemonthofsale,and1percentinthesecondmonthfollowingthemonthofsale.Theremainingsalesarenevercollected.HowmuchmoneydoesthecompanyexpecttocollectinthemonthofJuly?$918$856$876$874$943ThePurpleHousehasprojectedsalesof$38,000,$47,500,$52,700,and$85,000forQuarters1through4ofnextyear,respectively.Inventoryispurchasedat58percentofthesalespriceandispurchasedonequarterpriortothequarterofsale.Theaccountspayableperiodis45days.Theaccountspayablebalanceatthebeginningoftheyearis$72,000.Whatistheamountoftheexpecteddisbursementsforthethirdquarter?$29,058$39,933$40,250$34,550$28,333Nadine'sBoutiquehasanaccountspayableperiodof30days.Salesof$3,300,$3,400,$4,600,and$4,100areexpectedforQuarters1through4,respectively.Thecostofgoodssoldisequalto62percentofthenextquarter'ssales.Theaccountspayablebalanceis$975asofthebeginningofQuarter1.WhatistheamountoftheprojectedcashdisbursementsforaccountspayableforQuarter2ofnextyear?Assumeayearhas360days.$2,645$2,486$2,567$2,604$2,670Kid'sDelightexpectstosell$135,900oftoysinDecember,$64,700inJanuary,$74,400inFebruary,and$56,800inMarch.Thewholesalecostis58percentoftheretailprice.Thereceivablesperiodis30days,thepayablesperiodis60days,andallinventoryispurchasedonemonthpriortosellingit.WhatistheaccountspayablebalanceattheendofFebruary?Assumeayearhas360days.$74,544$80,678$79,327$76,168$76,096Asofthebeginningofthequarter,Callahan'shadacashbalanceof$710.Duringthequarter,thecompanycollected$1,860fromcustomersandpaidsuppliers$1,520.Thecompanyalsopaidaloanpaymentof$320andataxpaymentof$510.WhatisCallahan'scashbalanceattheendofthequarter?$110$290$220$150$90OnMay1,Jensen'shadabeginningcashbalanceof$284.Aprilsaleswere$810andMaysaleswere$960.DuringMay,cashexpenseswere$360andpaymentsonaccountspayablewere$630.Theaccountsreceivableperiodis30days.WhatisthebeginningcashbalanceonJune1?$145$254$104$183$265TheBoxStorehasabeginningcashbalanceof$318onMarch1.Projectedsalesare$720forFebruary,$850forMarch,and$980forApril.Thecostofgoodssoldisequalto57percentofsaleswithgoodsbeingpurchasedonemonthpriortothemonthofsale.Theaccountspayableperiodis45daysandtheaccountsreceivableperiodis20days.Thefirmhasmonthlycashexpensesof$274.WhatistheprojectedendingcashbalanceattheendofMarch?Assumeeverymonthhas30days.$342$360$407$418$372Duck-n-Runhasprojectedsalesof$280,000forJanuary,$315,000forFebruary,and$336,000forMarch.Thecompanycollects62percentofsalesinthemonthofsale,35percentinthemonthaftersale,and3percenttwomonthsaftersale.Theaccountsreceivablebalanceattheendofthepreviousquarterwas$9,600.WhatistheamountoftheFebruarycollections?$293,300$326,970$302,900$301,333$293,588DMElectronicshasprojectedsalesof$1,700,$1,900,$2,400,and$4,200forQuarters1to4,respectively.Salesinthefollowingyearareprojectedtobe4percentgreaterineachquarter.Assumepurchasesduringeachquarterequal48percentofprojectedsalesforthefollowingquarter.HowmuchwillbepaidtosuppliersinQuarter2ifitsaccountspayableperiodis30days?$1,146$1,108$1,072$1,251$984TDC'spurchasesfromsuppliersinaquarterareequalto61percentofthenextquarter'sforecastedsales.Thepayablesperiodis60days.Wages,taxes,andotherexpensesare18percentofsales,andinterestanddividendsare$72perquarter.Nocapitalexpendituresareplanned.TheprojectedsalesforYear1are$730,$770,$710,and$850forQuarters1to4,respectively.SalesforthefirstquarterofYear2areprojectedat$760.WhatistheamountofthetotaldisbursementsforQuarter3ofYear1?$672$661$649$678$634AssumeLaksko'shascreditsalesof$462,400inMarch,$507,500inApril,and$550,200inMay.Alsoassumethat64percentofsalesarecollectedinthemonthofsale,35percentarecollectedinthefollowingmonth,andtheremainderarenevercollected.Creditpurchasesare$224,600inMarch,$236,700inApril,and$252,700inMay.Creditpurchasesarepaidin30days.Interestis$12,400amonth,wagesandotherexpensesare$64,400amonth.Fixedassetspurchasesof$119,500arescheduledforAprilwithadditionalpurchasesof$56,400inMay.TheApril1cashbalancewas$321,060andtaxesof$180,000mustbepaidonApril15.WhatisthecashbalanceattheendofMay?$348,887$351,008$414,141$440,777$366,653You'veworkedoutalineofcreditarrangementthatallowsyoutoborrowupto$35millionatanytime.Theinterestrateis.52percentpermonth.Inaddition,2.5percentoftheamountthatyouborrowmustbedepositedinanon-interest-bearingaccount.Assumeyourbankusescompoundinterestonitslineofcreditloans.Whatistheeffectiveannualinterestrateonthislendingarrangement?6.59percent6.72percent6.42percent6.87percent6.94percentFancyFootwearhasalineofcreditwithalocalbankintheamountof$175,000.Theloanagreementcallsforannualinterestof6.8percentwithacompensatingbalanceof3percentofthetotalamountborrow