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31) A firm has actual sales in November of $1,000

Question : 31) A firm has actual sales in November of $1,000 : 1415011

 

31) A firm has actual sales in November of $1,000 and projected sales in December and January of $3,000 and $4,000, respectively. The firm makes 10 percent of its sales for cash, collects 40 percent of its sales one month following the sale, and collects the balance two months following the sale. The firm's total cash receipts in November is ________.

A) $1,000

B) $100

C) $700

D) $400

32) A firm has actual sales in November of $1,000 and projected sales in December and January of $3,000 and $4,000, respectively. The firm makes 10 percent of its sales for cash, collects 40 percent of its sales one month following the sale, and collects the balance two months following the sale. The firm's total expected cash receipts in January is ________.

A) $700

B) $2,100

C) $1,900

D) $300

33) In April, a firm had an ending cash balance of $35,000. In May, the firm had total cash receipts of $40,000 and total cash disbursements of $50,000. The minimum cash balance required by the firm is $25,000. At the end of May, the firm had ________.

A) an excess cash balance of $25,000

B) an excess cash balance of $0

C) required financing of $10,000

D) required financing of $25,000

34) In October, a firm had an ending cash balance of $35,000. In November, the firm had a net cash flow of $40,000. The minimum cash balance required by the firm is $25,000. At the end of November, the firm had ________.

A) an excess cash balance of $50,000

B) an excess cash balance of $75,000

C) required total financing of $15,000

D) required total financing of $5,000

35) In the month of August, a firm had total cash receipts of $10,000, total cash disbursements of $8,000, depreciation expense of $1,000, a minimum cash balance of $3,000, and a beginning cash balance of $500. The ending cash balance for August totals ________.

A) $1,500

B) $5,500

C) $2,500

D) $3,500

36) In the month of August, a firm had total cash receipts of $10,000, total cash disbursements of $8,000, depreciation expense of $1,000, a minimum cash balance of $3,000, and a beginning cash balance of $500. At the end of August, the firm ________.

A) required total financing of $500

B) had an excess cash balance of $5,500

C) had an excess cash balance of $500

D) required total financing of $2,500

37) Which of the following represents a way of coping with uncertainty in a cash budget?

A) careful estimation of cash budgets outputs

B) developing a pro forma income statement to forecast sales and then express the various income statement items as percentage of projected sales

C) always using the prior year's data for estimates of the future

D) using scenario analysis, or "what if" approach, to analyze cash flows under a variety of circumstances

38) One way a firm can reduce the amount of cash it needs in any month is to ________.

A) slow down the payment of receivables

B) delay the payment of wages

C) accrue taxes

D) speed up payment of accounts payable

 

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