a.  How long is cash typically tied up in inventories? (Show computations) b.   What would be the likely effect to Acme's operating cycle if the company changes its current policy that sales upon credit must

Which one of the following statements is correct if a firm has a receivables turnover of 10? It takes the firm an average of 36.5 days to sell its items. The firm has ten times more in accounts receivable than it does in cash. The firm collects its credit sales in an average of 36.5 days. It takes the firm 10 days to collect payment from its customers.

Provident Manufacturing recently began paying all of its invoices within 20 days of receipt, rather than its usual 30 days. How would this adjustment likely affect Provident’s chances of receiving a bank loan in the near future?

In June, Widgets, Inc. makes on account sales to Customs Motors of $800 and receives a payment of $500 from them. How would this affect the Accounts Receivable control account? O A. The AR total would be decreased by $300. O B. The AR total would be decreased by $500. O C. The AR total would be increased by $800. O D. The AR total would be increased by $300.

A company has the following excess (deficiency) of cash receipts over cash disbursements projected for the next year on a quarterly basis. It will not have any cash at the start of the year. The quarterly interest rte is 2%, and any borrowing and repayment of principal must be in round $1,000 amounts. There is no cash reserve requirement Assume loan related payments are made when excess cash is available.   Quarter   1 2 3 4 Year   Excess (deficiency) of cash available for disbursements ($121,140) ($41,680) $177,680 $2,160 $17,020   Required:   Prepare a cash budge by quarter for the year. What is the ending cash balance in the fourth quarter if interest is accrued until the end of the fourth quarter and paid at that time along with the total principal borrowed?   Please provide detail calculations of how you got the cash available at the beginning. Thank you.

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