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Corporate Finance

Business

Quiz 26 :

Working Capital Management

Quiz 26 :

Working Capital Management

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Use the table for the question(s)below. Luther Industries had sales of $980 million and a cost of goods sold of $560 million in 2019.A simplified balance sheet for the firm appears below: Luther Industries Balance Sheet As of December 31,2019 (millions of dollars) img -Luther's accounts payable days is closest to:
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Multiple Choice
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Answer:

A

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Which of the following statements is FALSE?
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Answer:

B

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Which of the following statements is FALSE?
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Answer:

C

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Collection float is made up of all of the following,EXCEPT:
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Use the table for the question(s)below. Luther Industries had sales of $980 million and a cost of goods sold of $560 million in 2019.A simplified balance sheet for the firm appears below: Luther Industries Balance Sheet As of December 31,2019 (millions of dollars) img -Calculate the number of days in Luther's Operating Cycle.
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Use the table for the question(s)below. Luther Industries had sales of $980 million and a cost of goods sold of $560 million in 2019.A simplified balance sheet for the firm appears below: Luther Industries Balance Sheet As of December 31,2019 (millions of dollars) img -Luther's inventory days is closest to:
Multiple Choice
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The cash conversion cycle (CCC)is defined as:
Multiple Choice
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The difference between a firm's operating cycle and its cash cycle is:
Multiple Choice
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Which of the following statements is FALSE?
Multiple Choice
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Use the table for the question(s)below. Luther Industries had sales of $980 million and a cost of goods sold of $560 million in 2019.A simplified balance sheet for the firm appears below: Luther Industries Balance Sheet As of December 31,2019 (millions of dollars) img -Luther's accounts receivable days is closest to:
Multiple Choice
Answer:
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Consider the following information for the question(s)below. Hammond Motors had sales of $35 million in 2019 with a cost of goods sold of $20 million.A simplified balance sheet for Hammond appears below (amounts in $ million): img -Hammond's net working capital in 2019 is closest to:
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Your firm purchases goods from its supplier on terms of 2/10,net 45.Calculate the effective annual cost to your firm if it chooses not to take advantage of the trade discount offered.
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Use the following information for the question(s)below. Wyatt Oil has the following accounts on its books: img Wyatt extends credit on terms of 1/15,net 30. -The percentage of Wyatt's receivables that are current is closest to:
Multiple Choice
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Use the table for the question(s)below. Luther Industries had sales of $980 million and a cost of goods sold of $560 million in 2019.A simplified balance sheet for the firm appears below: Luther Industries Balance Sheet As of December 31,2019 (millions of dollars) img -Luther's cash conversion cycle is closest to:
Multiple Choice
Answer:
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Consider the following information for the question(s)below. Hammond Motors had sales of $35 million in 2019 with a cost of goods sold of $20 million.A simplified balance sheet for Hammond appears below (amounts in $ million): img -Hammond's cash conversion cycle in 2019 is closest to:
Multiple Choice
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Which of the following statements is FALSE?
Multiple Choice
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Your firm purchases goods from its supplier on terms of 1/10,net 30.The effective annual cost to your firm if it chooses not to take advantage of the trade discount offered is closest to:
Multiple Choice
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The term 2/10 net 30 means:
Multiple Choice
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Use the following information for the question(s)below. Wyatt Oil has the following accounts on its books: img Wyatt extends credit on terms of 1/15,net 30. -The percentage of Wyatt's receivables that are still eligible to take the discount is closest to:
Multiple Choice
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KT Enterprises would like to construct and operate a new ice skating rink.In addition to the capital expenditures on the rink,management estimates that the project will require an investment today of $220,000 in net working capital.The firm will recover the investment in net working capital fifteen years from today,when management anticipates closing the rink.The discount rate for this type of cash flow is 8% per year.Calculate the present value of the cost of working capital for the ice skating rink.
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