1. Which statement is TRUE?

a. Capital Expenditures are part of Cash Flow from Operations

b. Cash flow from financing is the amount available for distribution to all investors after the company has made all investments in fixed assets and operating working capital.

c. Under GAAP, different firms must all follow the same rules in accounting for things like inventory and depreciation

d. Depreciation is considered a source of funds and is part of Cash Flow from Operations

2. Which statement is TRUE?

a. Commercial Paper is a security issued by a commercial bank which entitles the holder to receive the amount deposited plus accrued interest on a specified date.

b. Treasury Bills are issued by state and local govts., interest is not taxed by US govt.

c. Eurodollar Deposits are Dollar denominated CDs issued by non US banks

d. Repurchase Agreements are Intl. trade document that has been guaranteed by a bank

3. Suppose that Sales for the entire year were $200,000 and Cost of Goods Sold 60% of Sales. The Inventory Balance is $10,000, the Accounts Payable Balance is $5,000, and the Cash Conversion Cycle is 40 days. What is the Accounts Receivable balance?

            a.4,816             b. 8,124            c. 13,589                      d. 17,360