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WorksheetsQUIZZ FFM GROUP 3
Total questions: 10
Worksheet time: 2mins
Period between the acquisition of inventory and the collection of cash from receivables. = Inventory Period + Accounts Receivables Period.
Operating Cycle
Accounts Receivable Period
Accounts Payable Period
Cash Cycle
Your firm expects to receive a $30,000 payment from a supplier in 45 days. Calculating the increase in the cash can be collected 15 days sooner. Annual discount rate of 9%.
$111.95
$109.95
$108.95
$110.95
A firm has cash and equivalents of $20,000, accounts receivable of $30,000 and inventory of $25,000. If current liabilities equal $100,000, what is the firm's current ratio?
0.750
1.333
0.500
2.000
All else constant, an increase in inventory will have what effect on operating cash flow?
increase in operating cash flow
decrease in operating cash flow
no change in operating cash flow
it depends
Which factor least influences a business's decision about how much to invest in assets such as cash, securities, and inventory?
Short-term financial policy of the enterprise
Operational needs of the business
The level of risk that the business accepts
The level of profit that the business desires
In calculating Reorder Points (ROP), what factors will have the most influence if a company wants to reduce inventory costs?
Reduce the need to use the product
Reduce supplier delivery time
Reduce safety stock levels
All of the above factors have the same influence
A company produces and sells 5,000 units of product per year. The ordering cost is 200,000 VND per order, and the storage cost is 15 VND per product unit per year. What is the optimal quantity of products per order (Q*)?
200 units
250 units
300 units
400 units
A company has a demand for 10,000 units of product per year. The ordering cost is 150,000 VND each time and the storage cost is 12 VND per product unit per year. What is the company's minimum total expenses in a year?
500,000 VND
600,000 VND
700,000 VND
800,000 VND
During the Cash Budgeting process, which factor has the least impact on maintaining a positive Net Cash Flow?
Strengthen accounts receivable management
Negotiate payment terms with suppliers
Cut unnecessary operating costs
Optimize inventory
Suppose the company has a positive net cash flow forecast. According to the passage, which factor will most influence a company's ability to maintain a positive cash balance in the long term?
Positive net cash flow forecast
The company's beginning cash balance
The minimum cash balance
All of the above factors have the same influence
