QUESTION 3

1.       ABC Company sells 3,177 chairs a year at an average price per chair of $187. The carrying cost per unit is $30.43. The company orders 278 chairs at a time and has a fixed order cost of $64.4 per order. The chairs are sold out before they are restocked. What are the total shortage costs?  

QUESTION 6

1.       ABC Corporation currently has an inventory turnover of 44.89, a payables turnover of 8.08, and a receivables turnover of 21.49. How many days are in the operating cycle?  

QUESTION 7

1.       ABC Company writes 114 checks a day for an average amount of $646 each. These checks generally clear the bank in 5 days. In addition, the firm generally receives an average of $134,521 a day in checks that are deposited immediately. Deposited funds are available in 1 days. What is the firm's net float? 

QUESTION 9

1.       ABC Company sells 2,244 chairs a year at an average price per chair of $165. The carrying cost per unit is $15.85. The company orders 500 chairs at a time and has a fixed order cost of $84 per order. The chairs are sold out before they are restocked. What is the economic order quantity?Enter your answer rounded off to two decimal points. Do not enter comma in the answer box. For example, if your answer is 12.345 then ent 

QUESTION 10

1.       ABC Company sells 3,531 chairs a year at an average price per chair of $157. The carrying cost per unit is $30.42. The company orders 591 chairs at a time and has a fixed order cost of $120.6 per order. The chairs are sold out before they are restocked. What are the total carrying costs?  

QUESTION 11

1.       ABC Company has a cash cycle of 13.55 days, an operating cycle of 22.98 days, and an average collection period of 4 days. The company reported cost of goods sold of $287,825. What is the company's average balance in Accounts Payable?

 QUESTION 12

1.       As of this morning, your firm had a ledger balance of $4,923 with no outstanding deposits or checks. Today, your firm deposited 6 checks in the amount of $400 each and wrote a check in the amount of $870. What is the amount of the collection float as of the end of the day?

 QUESTION 13

1.     

2.      
Sales are collected as follows:

3.       In the month of Sales: 23%
In the next month: 33%
After 2 months: 12%
After 3 months: remainder is collected

 QUESTION 14

1.       On July 15^th, you purchased $10,000 worth of goods. The terms of the sale were 3/9, net 41. What is the effective annual rate of interest for the credit period for this sale? 

 QUESTION 15

1.       ABC Company has annual sales of $400,000 and cost of goods sold of $240,822. The accounts payable period is 24.07 days. What is the average accounts payable balance? 

 QUESTION 17

1.       ABC Company has annual sales of $406,918 and cost of goods sold of $198,600. The average accounts receivable balance is $73,618. How many days on average does it take the firm to collect its accounts receivable? Assume 365 days.

 QUESTION 18

1.       ABC Company sells 3,350 chairs a year at an average price per chair of $148. The carrying cost per unit is $35.71. The company orders 302 chairs at a time and has a fixed order cost of $129 per order. The chairs are sold out before they are restocked. How many orders will company place if it follows the economic order quantity model?

 QUESTION 19

1.       ABC Company has an average collection period of 42 days and factors all of its receivables immediately at a 1.7 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing?

 QUESTION 20

1.       Compute the Accounts Payable (A/P) period based on the following information:

Average A/P balance = $48,402
Annual Cost of Goods Sold = $124,561
Assume 365 days

 QUESTION 21

1.       

2.     

3.       Sales are collected as follows:

4.       In the month of Sales: 28%
In the next month: 24%
After 2 months: 9%
After 3 months: remainder is collected

5.       Calculate the cash collection for November. 

QUESTION 22

1.       The terms of the sale were 1/9, net 35. What is the effective annual rate of interest? 

 QUESTION 23

1.       

3.       Sales are collected as follows:

4.       In the month of Sales: 31%
In the next month: 31%
After 2 months: 7%
Remainder is considered as bad debt and is not collected.

5.       Calculate the cash collection for June.

QUESTION 24

1.       As of this morning, your firm had a ledger balance of $3,074 with no outstanding deposits or checks. Today, your firm deposited 7 checks in the amount of $442 each and wrote 4 checks in the amount of $981. What is the amount of the disbursement float as of the end of the day?  

QUESTION 25

1.       Compute the cash cycle based on the following information:

Average Collection Period = 38
Accounts Payable Period = 30
Average Age of Inventory = 37  

QUESTION 26

1.       

3.       The company has estimated expenses as follows: 

General and administrative expenses: $3,702
Material purchases are 21 percent of sales. Material purchases are paid in the month following the purchase.
Interest payment per month: $3,672
Rent expenses per quarter starting March: $5,076

4.       Calculate the cash outflows for June.

QUESTION 27

1.       ABC Corporation currently has an inventory turnover of 5.64, a payables turnover of 16.14, and a receivables turnover of 10.18. How many days are in the cash cycle?