Central Supply phelp off an accounts payable for a toboggan it had purchased on credit 3 weeks ago. The time duration between this particular day and also the day Central Supply will obtain cash from the sale of this toboggan is dubbed the:rev: -Operating cycle.-Inventory period.-Accounts receivable duration.-Accounts payable period.-Cash cycle.
You are watching: Which one of these actions will increase the operating cycle? assume all else held constant.
Which one of the following will certainly boost net working capital? Assume the existing ratio is better than 1.0.-Paying a supplier for a previous purchase.-Paying off a permanent debt.-Selling inventory at cost.-Purchasing inventory on crmodify.-Selling inventory at a profit on credit
Which among the following will certainly decrease the net functioning resources of a firm? Assume the current ratio is better than 1.0.-Selling inventory at expense.-Collecting payment from a customer.-Paying a payment on a irreversible debt.-Selling a solved ascollection for book worth.-Paying a supplier for the purchase of an inventory item.
Which among these actions will certainly rise the operating cycle? Assume all else held consistent.-Decreasing the payables duration.-Decreasing the receivables turnover rate.-Increasing the payables period.-Decreasing the average inventory level.-Increasing the inventory turnover rate
Which one of these will certainly increase the cash cycle, all else held constant?-Decreasing the accounts receivable turnover rate-Increasing the accounts payable period-Decreasing the inventory period-Increasing the inventory turnover rate-Decreasing the accounts receivable period
Which one of the complying with will decrease the operating cycle?-Decreasing the inventory turnover price.-Decreasing the accounts payable period.-Increasing the accounts receivable turnover price.-Increasing the accounts payable period.-Increasing the accounts receivable period.
An increase in which one of the following will certainly decrease the cash cycle, all else organized constant?-Payables turnover.-Days sales in inventory.-Operating cycle.-Inventory turnover rate.-Accounts receivable period.
Assume all else organized continuous. If you pay your companies 5 days sooner, then:-Your payables turnover rate will decrease.-You might require additional funds from other resources to money the cash cycle.-The cash cycle will decrease.-Your operating cycle will boost.-The accounts receivable period will certainly decrease.
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The Lumber Mart recently reinserted its monitoring team. As an outcome, the firm is implementing a restrictive temporary financial plan in place of the flexible plan under which the firm had actually been operating. Which one of the complying with have to the employees mean as a result of this plan change?-Increasing monthly sales as compared to the prior year.-Greater inventory selection.-Fewer out-of-stock occurrences.-Loss of crmodify customers.-More liberal crmodify terms.
A versatile temporary financial policy:-Increases a firm"s require for irreversible financing.-Minimizes net working resources.-Avoids poor debts by just offering items for cash.-Maximizes solved assets and minimizes current assets.-Is most appropriate for a firm through fairly high moving prices and fairly low shortage costs
A versatile short-lived financial policy:-Maximizes cashouts.-Increases shortage costs as a result of constant cash-outs.-Tends to decrease sales as compared to a restrictive plan.-Incurs even more transporting costs than a restrictive plan.-Requires only a minimum investment in existing assets
New Products has sales of $913,000 and also price of goods offered of $684,000. The firm had a beginning inventory of $43,000 and also an ending inventory of $48,000. What is the length of the inventory period?15.01 days17.89 days24.28 days30.53 days23.69 days
Inventory turnover = $684,000 / <($43,000 + 48,000) / 2> = 15.0133Inventory duration = 365 / 15.0133 = 24.28 days
Mid-Western Markets has actually sales of $947,000 and expenses of goods offered of $769,000. At the start of the year, the inventory was $74,300. At the end of the year, the inventory balance was $69,800. What is the inventory turnover rate?10.67 times12.78 times14.22 times9.37 times12.70 times
Morning Star has crmodify sales of $914,900, costs of products sold of $764,800, average accounts receivable of $121,300, and average accounts payable of $127,600. On average, just how long does it take for the firm"s credit customers to pay for their purchases?57.89 days39.24 days48.39 days31.88 days60.90 days
Bradley"s has an inventory turnover price of 8, a payables turnover price of 7, and also a receivables turnover price of 11. How long is the firm"s operating cycle?45.06 days78.81 days75.63 days30.13 days26.67 days
Inventory duration = 365 / 8 = 45.625 daysAccounts receivable duration = 365 / 11 = 33.182 daysOperating cycle = 45.625 + 33.182 days = 78.81 days
Metal Products Co. has an inventory period of 53 days, an accounts payable duration of 68 days, and also an accounts receivable turnover price of 18. What is the length of the cash cycle?3.00 days5.28 days26.28 days71.00 days73.28 days
The Athletic Sports Store has actually a start receivables balance on January 1 of $410. Sales for January through April are $440, $480, $690, and also $720, respectively. The accounts receivable period is 45 days. How much did the firm collect in the month of April? Assume a year has actually 360 days.$460$445$585$690$705
The Dog Housage expects sales of $480, $760, $920, and also $960 for the months of May through August, respectively. The firm collects 80 percent of sales in the month of sale, 15 percent in the month adhering to the month of sale, and 3 percent in the second month following the month of sale. The remaining 2 percent of sales is never before built up. How much money does the firm mean to collect in the month of August?$928.80$882.50$525.60$774.80
Nadine"s Boutique has a 30-day accounts payable duration. The firm expects quarterly sales of $3,300, $3,400, $4,600, and $4,100, respectively, for following year. The quarterly expense of goods offered is equal to 70 percent of the next quarter"s sales. The firm has a start accounts payable balance of $975 as of quarter 1. What is the amount of the projected cash disbursements for accounts payable for quarter 3 of next year? Assume a year has actually 360 days.$2,940.00$2,203.33$2,546.67$2,986.67$2,380.00
The Delta Fish Hatchery components its accounts receivables automatically at a discount rate of 1.8 percent. The average arsenal period is 39 days. Assume all accounts are accumulated in complete. What is the reliable yearly interest price on this arrangement?18.53 percent17.20 percent20.36 percent21.78 percent16.04 percent
Interemainder rate for 39 days = .018 / (1 - .018) = .01833Number of periods per year = 365 / 39 = 9.35897Effective yearly price = 1.018339.35897 - 1 = .1853, or 18.53 percent
Mary is cshedding the Income Outline account. Her agency had a net loss of $2,000. The correct journal enattempt is:
Goods on consignment are items shipped by their owner, dubbed the consignee, to another party called the consignor. T or F
A $100 petty cash fund has cash of $17 and valid receipts for $81. The journal enattempt upon replenishment would certainly include a
Connect Finance Online Access for Essentials of Investments9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie
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