Question;1) Assume Green Leaf Nursery anticipated sales of $500 in this quarter. Accounts receivable at the beginning of the quarter was $300. Assuming a collection period of 30 days, which is the approximate cash collections amount for the quarter?a) $550b) $630c) $250d) $170e) None of the above2) Which of the following does not reduce collection float?a) deposit collections at least daily.b) make sure all checks it receives are properly dated and signed.c) utilize the benefits of the Check Clearing Act for the 21st Century.d) consolidate all lockboxes into one lockbox located near the home office.3) 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?a) $52,200b) $39,150c) $51,678d) None of the above4) Auto Parts sells 1,600 electric parts per month and then reorders another 1,600 parts. If the relevant carrying cost per electric part is $4 and the fixed order cost is $650, what is the total carrying cost and the restocking cost, respectively?a) $6,400 and $33,800b) $3,200 and $33,800c) $6,400 and $7,800d) $3,200 and $7,800e) None of the above5) 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 EOQ?a) 310 unitsb) 300 unitsc) 150 unitsd) 155 unitse) None of the above6) The operating cycle begins when _____ and ends when_____.a) inventory is purchased, inventory is soldb) inventory is purchased, payment is received for the sale of that inventoryc) inventory is purchased, the supplier of the inventory is paidd) the sale of inventory occurs, payment is received for the sale of that inventorye) the sale of inventory occurs, the supplier of the inventory is paidTRUE OR FALSE1) The optimal credit policy minimizes the total cost of granting credit.2) Firms should avoid offering credit at all cost.3) An increase in a firm's average collection period generally indicates that an increased number of customers are taking advantage of the cash discount.4) The costs of the credit application process and the costs expended in the collection process are carrying costs of granting credit.5) Capacity refers to the ability of a firm to meet its credit obligations out its operating cash flows.6) The optimal credit policy is the policy that produces the largest amount of sales for a firm.SHORT ANSWER1) List three examples of short-term borrowing.
Paper#53076 | Written in 18-Jul-2015Price : $22