Firm D cash sales for the month are $100,000 and its accounts receivable payments for the month are $100,000. What is its total incoming cash flow for the month if its beginning cash for the month is $50,000, its wages and salaries for the month are $50,000 and there are no other cash inflows for […]
Date: September 19th, 2020
In response to competition from the Eurobond market, the SEC adopted _____ in 1990, which allows firms to issue bonds in the U.S. market with minimal regulatory red tape as long as they are sold only to qualified investors (e.g., financial institutions). a. the Nonregistration Exception b. Qualified Investors Rule (QIR) c. Rule 99B d. […]
Date: September 19th, 2020
Firm E cash sales in January are $200,000, its accounts receivable payments for January are $100,000, its beginning cash for January is $50,000, and there are no other cash inflows for January. Its accounts payable payments for the January are $100,000 and its wages and salaries for January are $100,000, and its interest payments for […]
Date: September 19th, 2020
Excess cash is an asset that has a/an ________ due to lost earning power for the company. A) opportunity cost B) cash cost C) sunk cost D) erosion cost ANSWER Answer: A
Date: September 19th, 2020
Firm C accounts payable for the month are $100,000 and its wages and salaries for the month are $100,000. What is its total outgoing cash flow for the month if its interest payments for the month are $50,000, its accounts receivable payments for the month are $100,000, and there are no other cash outflows for […]
Date: September 19th, 2020
The goal of the daily management of cash is to have sufficient cash on hand to pay the bills without carrying ________. A) excess debt B) excess sunk costs C) excess depreciation D) excess cash ANSWER Answer: D
Date: September 19th, 2020
TRUE or FALSE. Underwriter spreads on corporate bonds reflect substantial economies of scale. a. TRUE b. FALSE ANSWER A
Date: September 19th, 2020
The ________ of a firm is the amount of time required for a company to convert cash invested in its operations to cash received as a result of its operations. A) cash turnover B) cash conversion cycle C) average age of inventory D) average collection period ANSWER B
Date: September 19th, 2020
In the daily planning for cash or the cash forecast, we want to hone in on the management of cash as it applies to the ________ of the company. A) short-term borrowing and long-term investing B) long-term borrowing and short-term investing C) short-term borrowing and short-term investing D) long-term borrowing and long-term investing […]
Date: September 19th, 2020
Briefly describe the costs included in the production process. What will be an ideal response? ANSWER Answer: Production costs include the wages paid to workers, the raw materials for manufacturing products, the overhead (such as electricity, water, plant space, and so on), and the shipping costs that get the product to the customer.
Date: September 19th, 2020
