Question 1

J.S.and Co.has estimated quarterly sales for next year,starting with Quarter 1,of $13,800,$15,200,$17,300,and $16,500.Purchases are equal to 65 percent of the following quarter's sales.What is the cash outlay for accounts payable for Quarter 3 if the firm has a 30-day accounts payable period? Assume each month has 30 days.

Accepted Answer

A)  $9,938.33
B)  $10,898.33
C)  $13,486.67
D)  $11,966.67
E)  $12,503.33F) All of the above
G) A) and C)

Question 2

Which of the following are inversely related to increases in a firm's current assets?
I.Reorder costs
II.Shortage costs
III.Restocking costs
IV.Carrying costs

Accepted Answer

A)  I and III only
B)  II and IV only
C)  I, II, and III only
D)  II, III, and IV only
E)  I, III, and IV onlyF) B) and C)
G) B) and D)

Question 3

Southern Fried Chick'n has estimated quarterly sales for next year,starting with Quarter 1,of $38,200,$41,300,$79,700,and $32,900.The accounts receivable period is 11 days.What is the expected accounts receivable balance at the end of the second quarter? Assume each month has 30 days.

Accepted Answer

A)  $4,668.89
B)  $10,603.10
C)  $5,047.78
D)  $15,143.33
E)  $14,006.67F) A) and B)
G) B) and C)

Question 4

Big Red's purchases from suppliers in a quarter are equal to 71 percent of the next quarter's forecast sales.The payables period is 60 days; other expenses are paid when incurred Wages,taxes,and other expenses are 24 percent of sales,and interest and dividends are $40 per quarter.No capital expenditures are planned.Projected quarterly sales,starting with Q1,are $1,520,$1,580,$1,630,and $1,590,respectively.Sales for the first quarter of the following year are projected at $1,540.What is the amount of the total disbursements for Q2?

Accepted Answer

A)  $1,564
B)  $1,520
C)  $1,601
D)  $1,538
E)  $1,553F) A) and D)
G) B) and E)

Exam 16: Short-Term Financial Planning

Which of the following are inversely related to increases in a firm's current assets? I.Reorder costs II.Shortage costs III.Restocking costs IV.Carrying costs

Correct Answer
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Southern Fried Chick'n has estimated quarterly sales for next year,starting with Quarter 1,of $38,200,$41,300,$79,700,and $32,900.The accounts receivable period is 11 days.What is the expected accounts receivable balance at the end of the second quarter? Assume each month has 30 days.

Correct Answer
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Correct Answer
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Correct Answer
verified

Exam 16: Short-Term Financial Planning

Which of the following are inversely related to increases in a firm's current assets? I.Reorder costs II.Shortage costs III.Restocking costs IV.Carrying costs

Correct AnswerverifiedShow Answer

Southern Fried Chick'n has estimated quarterly sales for next year,starting with Quarter 1,of $38,200,$41,300,$79,700,and $32,900.The accounts receivable period is 11 days.What is the expected accounts receivable balance at the end of the second quarter? Assume each month has 30 days.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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