Southwest Outdoor Store will have cash receipts of $47,000 in November and cash disbursements of $41,000 for this month. If its beginning cash is $7,000 and its desired reserve is $4,000, what will its excess be for December? A) There is no excess but a shortfall. B) $6,000 C) $9,000 D) $13,000 ANSWER […]
Date: September 19th, 2020
For August, Bletchley Blinds will have cash receipts of $97,000 and cash disbursements of $108,000. If its beginning cash is $5,000 and its desired reserve is $2,000, what will be its shortfall in cash for the month? A) There is no shortfall in cash but an excess of cash. B) -$11,000 C) -$8,000 D) -$6,000 […]
Date: September 19th, 2020
For April, Anderson Antiques will have cash receipts of $365,000 and cash disbursements of $370,000. If its beginning cash is $4,000 and its desired reserve is $3,000, what will be its shortfall in cash for the month? A) There is no shortfall in cash but an excess of cash. B) -$3,000 C) -$4,000 D) -$5,000 […]
Date: September 19th, 2020
Which of the below is a SOURCE of cash? A) Cash Sales B) Wages and Salaries C) Rent or Lease payments D) Dividend payments ANSWER Answer: A Explanation: A) The sources of cash (cash receipts or cash inflow) are: cash sales; payments received on accounts receivables (mainly credit sales); cash sales of equipment […]
Date: September 19th, 2020
Which of the below is a USE of cash? A) Credit Sales B) Retirement of debt (paying off loans and bonds) C) Bank loans D) Cash sales of equipment or other assets of the company ANSWER Answer: B Explanation: B) The sources of cash (cash receipts or cash inflow) are: cash sales; payments […]
Date: September 19th, 2020
Masulis (1980) documented evidence that the market generally reacts favorably to a leverage- increasing debt-for-equity swap, and unfavorably to a leverage decreasing equity-for-debt swap. Which of the following is NOT a legitimate theoretical explanation for these market reactions? a. Increasing leverage increases the tax shield of debt, while extinguishing debt decreases it. b. Increasing leverage […]
Date: September 19th, 2020
Pearson Advising will have cash receipts of $35,000 in April and cash disbursements of $30,000 for this month. If its beginning cash is $5,000 and its desired reserve is $2,000, what will its excess be for April? A) There is no excess but a shortfall. B) $5,000 C) $7,000 D) $8,000 ANSWER Answer: […]
Date: September 19th, 2020
Forecasting entails drawing a financial picture of a company for the ________. A) year B) month C) quarter D) All of these ANSWER Answer: D
Date: September 19th, 2020
For June, Snake River Rafting will have cash receipts of $68,000 and cash disbursements of $85,000. If its beginning cash is $9,000 and its desired reserve is $3,000, what will be its shortfall in cash for the month? A) There is no shortfall in cash but an excess of cash. B) -$11,000 C) -$8,000 D) […]
Date: September 19th, 2020
The conservative funding strategy is a strategy by which a firm finances at least its seasonal requirements, and possibly some of its permanent requirements, with short-term funds and the balance of its permanent requirements with long-term funds. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
