You are watching: Which one of the following will increase the operating cycle?
Which among the complying with will certainly boost net functioning capital? Assume the existing ratio is higher than 1.0.-Paying a supplier for a previous purchase.-Paying off a permanent debt.-Selling inventory at price.-Purchasing inventory on crmodify.-Selling inventory at a profit on credit
Which one of the following will decrease the net working capital of a firm? Assume the current proportion is greater than 1.0.-Selling inventory at cost.-Collecting payment from a customer.-Paying a payment on a permanent debt.-Selling a fixed ascollection for book worth.-Paying a supplier for the purchase of an inventory item.
Which one of these actions will increase the operating cycle? Assume all else held consistent.-Decreasing the payables period.-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 hosted 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 adhering to will certainly decrease the operating cycle?-Decreasing the inventory turnover price.-Decreasing the accounts payable duration.-Increasing the accounts receivable turnover price.-Increasing the accounts payable duration.-Increasing the accounts receivable period.
An increase in which among the complying with will decrease the cash cycle, all else hosted constant?-Payables turnover.-Days sales in inventory.-Operating cycle.-Inventory turnover rate.-Accounts receivable period.
Assume all else held consistent. If you pay your companies 5 days sooner, then:-Your payables turnover price will decrease.-You may require additional funds from various other resources to fund the cash cycle.-The cash cycle will decrease.-Your operating cycle will increase.-The accounts receivable duration will certainly decrease.
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The Lumber Mart freshly reput its administration team. As a result, the firm is implementing a restrictive short-lived financial policy in location of the versatile policy under which the firm had actually been operating. Which among the adhering to must the employees mean as a result of this policy change?-Increasing monthly sales as compared to the prior year.-Greater inventory selection.-Fewer out-of-stock occurrences.-Loss of credit customers.-More liberal crmodify terms.
A functional momentary financial policy:-Increases a firm"s need for irreversible financing.-Minimizes net working capital.-Avoids bad debts by only selling items for cash.-Maximizes fixed assets and minimizes current assets.-Is many appropriate for a firm through relatively high transferring prices and relatively low shortage costs
A flexible temporary financial policy:-Maximizes cashouts.-Increases shortage expenses due to constant cash-outs.-Tends to decrease sales as compared to a restrictive plan.-Incurs more transporting expenses than a restrictive policy.-Requires just a minimum investment in current assets
New Products has actually sales of $913,000 and cost of goods marketed of $684,000. The firm had a beginning inventory of $43,000 and an finishing 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 period = 365 / 15.0133 = 24.28 days
Mid-Western Markets has actually sales of $947,000 and also prices of items sold of $769,000. At the beginning 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 credit sales of $914,900, prices of items offered of $764,800, average accounts receivable of $121,300, and also 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 actually an inventory turnover price of 8, a payables turnover price of 7, and also a receivables turnover price of 11. How lengthy is the firm"s operating cycle?45.06 days78.81 days75.63 days30.13 days26.67 days
Inventory period = 365 / 8 = 45.625 daysAccounts receivable period = 365 / 11 = 33.182 daysOperating cycle = 45.625 + 33.182 days = 78.81 days
Metal Products Co. has actually an inventory period of 53 days, an accounts payable duration of 68 days, and also an accounts receivable turnover rate of 18. What is the size of the cash cycle?3.00 days5.28 days26.28 days71.00 days73.28 days
The Athletic Sports Store has a start receivables balance on January 1 of $410. Sales for January with April are $440, $480, $690, and $720, respectively. The accounts receivable period is 45 days. How a lot did the firm collect in the month of April? Assume a year has 360 days.$460$445$585$690$705
The Dog House expects sales of $480, $760, $920, and also $960 for the months of May via August, respectively. The firm collects 80 percent of sales in the month of sale, 15 percent in the month complying with the month of sale, and 3 percent in the second month adhering to the month of sale. The remaining 2 percent of sales is never accumulated. How much money does the firm expect to collect in the month of August?$928.80$882.50$525.60$774.80
Nadine"s Boutique has a 30-day accounts payable period. The firm expects quarterly sales of $3,300, $3,400, $4,600, and $4,100, respectively, for following year. The quarterly expense of items offered is equal to 70 percent of the following quarter"s sales. The firm has actually a beginning 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 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 immediately at a discount price of 1.8 percent. The average arsenal duration is 39 days. Assume all accounts are built up in full. What is the effective yearly interemainder price on this arrangement?18.53 percent17.20 percent20.36 percent21.78 percent16.04 percent
Interest price for 39 days = .018 / (1 - .018) = .01833Number of durations per year = 365 / 39 = 9.35897Effective annual price = 1.018339.35897 - 1 = .1853, or 18.53 percent
Mary is cshedding the Income Synopsis account. Her company had a net loss of $2,000. The correct journal entry is:
Goods on consignment are products shipped by their owner, referred to as the consignee, to another party dubbed the consignor. T or F
A $100 petty cash money has actually cash of $17 and also valid receipts for $81. The journal enattempt upon replenishment would incorporate a
Connect Finance Online Access for Essentials of Investmentsnine EditionAlan J. Marcus, Alex Kane, Zvi Bodie
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