eoc_chapter_16

# 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
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
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 ###
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
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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