Fin 571 Week 3 Wileyplus Practice Quiz New

FIN 571 Week 3 WileyPLUS Practice Quiz NEW

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FIN 571 Week 3 WileyPLUS Practice Quiz NEW

Multiple Choice Question 32

The operating cycle

ends not with the finished goods being sold to customers and the cash collected on the sales; but when you take into account the time taken by the firm to pay for its purchases.

To measure operating cycle we need another measure called the days' payables outstanding.

begins when the firm receives the raw materials it purchased that would be used to produce the goods that the firm manufactures.

begins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales.


Multiple Choice Question 57

You are provided the following working capital information for the Ridge Company:

|Ridge Company                                               |
|Account                                       |$             |
|                                              |              |
|Inventory                                     |$12,890       |
|Accounts receivable                           |12,800         |
|Accounts payable                             |12,670         |
|                                              |              |
|Net sales                                     |$124,589       |
|Cost of goods sold                           |99,630         |


Operating cycle: What is the operating cycle for Ridge Company?

51 days

47 days

85 days

36 days


Multiple Choice Question 80

Ticktock Clocks sells 10,000 alarm clocks each year. If the total cost of placing an order is $65 and it costs $85 per year to carry the alarm clock in inventory, use the EOQ formula to calculate the optimal order size.

26,154 clocks

24 clocks

15,294 clocks

161 clocks