1. A prearranged, short-term bank loan made on a formal or informal basis, and typically reviewed for renewal annually, is called a:

A. cleanup loan.

B. line of credit.

C. letter of credit.

D. compensating balance.

E. roll-over.

2. Your firm collects 30% of sales in the month of sale, 55% of sales in the month following the month of sale, and 13% of sales in the second month following the month of sale. Given this, you will collect _______ sales during the month of June.

A. 13% of May

B. 55% of April

C. 30% of May

D. 55% of June

E. 55% of May