ecpi Timed Finance

1.) Identify a SOURCE of cash: (select only one alternative) Group of answer choices -Dividends are paid -Accounts Receivable goes down -Long-term Debt is retired -Inventory is purchased -Accounts Payable goes down 2. Indicate the effect of the following on the operating cycle: Inventory takes longer to get sold. Group of answer choices -Increase -Decrease -No change 3. Compute the cash cycle based on the following information: Inventory Period = 25 Accounts Receivable Period = 29 Accounts Payable Period = 19 4. The table contains the Sales estimates for the next year. Month Sales $ Month Sales $ Jan 55,236 July 62,041 Feb 79,496 Aug 55,748 Mar 55,748 Sep 55,236 Apr 62,041 Oct 55,748 May 55,236 Nov 79,496 June 79,496 Dec 62,041 Sales are collected as follows: In the month of Sales: 32% In the next month: 20% After 2 months: 2% After 3 months: remainder is collected What is the cash collection for June? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. 5. The terms of the sale were 2/10, net 43. What is the effective annual rate of interest? Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box. 6. The terms of the sale were 5/18, net 46. What is the effective annual rate of interest? Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box. 7. XYZ is a retailer and sells 166,000 units per year. It purchases from a single supplier. Fixed cost per order is $964 and carrying cost is $11 per unit. Suppose XYZ orders 4,000 units per order from the supplier. What are the total costs (sum of carrying costs and shortage costs)? Round off your answer to two decimal points. Do not enter $ in the answer box. 8. XYZ is a retailer and sells 166,000 units per year. It purchases from a single supplier. Fixed costs per order are $971 and carrying cost is $14 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity? Enter your answer rounded off to two decimal points. Margin for error: +/- 1