This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 19 ________ 1. Which one of the following is a use of cash? a. a decrease in inventory b. an increase in accounts payable c. increase in fixed assets d. increase in long-term debt ________ 2. A firm has an accounts payable period of 46 days, an inventory period of 56 days, and an accounts receivable period of 34 days. What is the length of the cash cycle? a. 24 days b. 44 days c. 68 days d. 90 days ________ 3. Elises Boutique has sales of $726,000 and cost of goods sold equal to 56 percent of sales. The beginning inventory is $62,000 and the ending inventory is $69,000. What is the length of the inventory period? a. 54.6 days b. 58.8 days c. 63.4 days d. 66.7 days ________ 4. All else equal, which one of the following will decrease the operating cycle? a. decrease in the cash cycle b. decrease in the inventory turnover rate c. increase in the receivable turnover rate d. increase in the payables turnover rate ________ 5. Money deposited in a bank in a low-interest or non-interest-bearing account to fulfill a requirement in a loan...
View Full Document