eoc_chapter_16 - Chapter 16 Problems 1-18 Input boxes in...

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Chapter 16 Problems 1-18 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
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Chapter 16 Question 1 Input Area: Increase I Decrease D No change N Output Area: a. N b. N c. N d. D e. D f. I g. N h. D I. I j. D k. D l. N m. D n. D o. D
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Chapter 16 Question 2 Input Area: Book net worth $21,000 Long-term debt $5,000 NWC (exc. cash) $8,500 Fixed assets $8,000 Current liabilities $4,000 Output Area: Cash $9,500 Current assets $22,000
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Chapter 16 Question 3 Input Area: Increase I Decrease D No change N Output Area: a. I b. I c. D d. N e. D f. N
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Chapter 16 Question 4 Input Area: Increase I Decrease D No change N Output Area: Cash Cycle Operating Cycle a. D D b. I N c. D D d. D D e. D N f. I I
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Chapter 16 Question 5 Input Area: Beginning A/R $500 a. Collection period 45 b. Collection period 60 c. Collection period 30 Q1 Q2 Q3 Sales $600 $720 $900 Output Area: a. 45-day collection period implies all receivables outstanding from previous quarter in the current quarter, and (90-45) = 1/2 of current sales are collected. Q1 Q2 Q3 Beginning receivables $500 $300 $360 Sales $600 $720 $900 Cash collections $(800) $(660) $(810) Ending receivables $300 $360 $450 b. 60-day collection period implies all receivables outstanding from previous quarter in the current quarter, and (90-60) = 1/3 of current sales are collected. Beginning receivables $500 $400 $480 Sales $600 $720 $900 Cash collections $(700) ### $(640) ### $(780) ### Ending receivables $400 ### $480 ### $600 ### c. 30-day collection period implies all receivables outstanding from previous quarter in the current quarter, and (90-30) = 2/3 of current sales are collected. Beginning receivables $500 $200 ### $240 ### Sales $600 $720 $900 Cash collections $(900) ### $(680) ### $(840) ### Ending receivables $200 ### $240 ### $300 ###
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Q4 $800 r are collected Q4 $450 $800 $(850) $400 r are collected $600 $800 $(867) $533 r are collected $300 $800 $(833) $267
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Chapter 16 Question 6 Input Area: Item Beginning Ending Inventory $9,146 $11,416 A/R $4,819 $5,627 A/P $8,126 $8,526 Net sales $70,126 COGS $52,143 Output Area: Inventory turnover 5.0718 Inventory Period 71.9668 Receivable turnover 13.4264 Receivable period 27.1853 Operating cycle 99.15 Payables turnover 6.2627 Payables period 58.2818 Cash cycle 40.87
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Chapter 16 Question 7 Input Area: Collection period 48 Discount 2% Output Area: EAR 16.61%
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This note was uploaded on 05/01/2009 for the course FINC 106 taught by Professor Dr.nehale during the Spring '09 term at Baptist College of Health Sciences.

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eoc_chapter_16 - Chapter 16 Problems 1-18 Input boxes in...

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