Firm A cash sales for the month are $200,000 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 and there are no other cash inflows for the month? A) $100,000 B) $150,000 C) $300,000 D) […]
Date: September 19th, 2020
In short-term cash management as it pertains to the operations of the firm, which of the below is NOT one of the general objectives? A) Determining the cash surplus B) Determining the job satisfaction level of employees C) Determining the money the company can invest D) Determining the cash deficit ANSWER Answer: B […]
Date: September 19th, 2020
Managers in charge of short-term cash outflow direct their attention to cash management as it pertains to the operations of the firm, much as ________. A) they do with their daily cash needs B) they do with their long-term cash needs C) they do with their capital budgeting needs D) All of these […]
Date: September 19th, 2020
A firm is analyzing two possible capital structures—30 and 50 percent debt ratios. The firm has total assets of $5,000,000 and common stock valued at $50 per share. The firm has a marginal tax rate of 40 percent on ordinary income. The number of common shares outstanding for each of the capital structures would be […]
Date: September 19th, 2020
Firm B accounts payable for the month are $200,000 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 and its beginning cash for the month is $50,000, there are no other cash outflows for the […]
Date: September 19th, 2020
The ________ of a firm is the amount of time that elapses from the point when the firm inputs material and labor into the production process to the point when cash is collected from the sale of the finished product that contains these production inputs. A) cash conversion cycle B) average age of inventory C) […]
Date: September 19th, 2020
Pharma Pesticides Corp. uses the sales forecast to plan production. The company produces the bug killer “2K Spray” one month in advance of the forecasted sale. The January sales forecast of 380 units will be scheduled for December production. However, the company also notes that sales forecasts and actual sales can differ, and the company […]
Date: September 19th, 2020
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
