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
When implementing the cash management strategies, a firm should avoid damaging a firm’s credit rating by overstretching accounts payable. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Once all the expenditures and receipts are determined, a financial manager can determine the probability of cash excess or cash shortfall in upcoming periods. Indicate whether the statement is true or false. ANSWER Answer: TRUE
Date: September 19th, 2020
Southwest Distribution Inc. estimates the following expenditures: interest paid of $17,500; wages paid to workers of $74,600; overhead costs of $12,300; raw materials of $55,000; shipping costs of $7,100 and dividends paid to common stockholders of $15,000. What are the total production costs? A) $141,900 B) $149,000 C) $166,500 D) $181,500 ANSWER Answer: […]
Date: September 19th, 2020
The value of a firm at optimum capital structure is computed as ________. A) earnings before interest and taxes times one less tax rate divided by one plus weighted average cost of capital B) earnings before interest and taxes times one less tax rate divided by weighted average cost of capital C) operating cash flow […]
Date: September 19th, 2020
A company estimates the following expenditures: preferred dividends paid of $22,200; wages paid to workers of $49,600; overhead costs of $24,300; raw materials of $45,000; shipping costs of $12,100. What are the total production costs? A) $131,000 B) $134,500 C) $142,100 D) $153,200 ANSWER Answer: A Explanation: A) Production costs include, among other […]
Date: September 19th, 2020
Buckeye Inc. uses the sales forecast to plan production. The company produces a glow-in-the-dark cup called “Lights-Out” one month in advance of the forecasted sale. The January sales forecast of 20 units of these cups will be scheduled for December production. However, the company also notes that sales forecasts and actual sales can differ, and […]
Date: September 19th, 2020
