Deck 16: Short-Term Financial Planning

Question 1

Which of these is a use of cash?

A)Issuing new shares of stock
B)Decreasing accounts receivable
C)Decreasing inventory
D)Decreasing fixed assets
E)Decreasing accounts payable

Answer 1

Decreasing accounts payable

Question 2

Which one of the following is a use of cash?

A)Selling inventory at cost
B)Paying a supplier for inventory you purchased last month
C)Borrowing money from a local bank
D)Collecting payment from a customer
E)Selling a fixed asset such as a piece of machinery

Answer 2

Paying a supplier for inventory you purchased last month

Question 3

The cash cycle equals the:

A)inventory period plus the accounts receivable period.
B)inventory period plus the accounts payable period.
C)operating cycle minus the inventory period.
D)operating cycle minus the accounts payable period.
E)operating cycle minus the accounts receivable period.

Answer 3

operating cycle minus the accounts payable period.

Question 4

The operating cycle is equal to the:

A)inventory period plus the accounts payable period.
B)accounts receivable period plus the cash cycle.
C)inventory period minus the accounts payable period plus the accounts receivable period.
D)accounts receivable period plus the inventory period.
E)inventory period plus the cash cycle.

Question 5

Which one of the following is a graphical representation of the operating and cash cycles?

A)Operations line
B)Production period
C)Cash flow time line
D)Inventory flow chart
E)Customer service line

Question 6

Which of these activities is a source of cash?

A)Decreasing long-term debt
B)Increasing inventory
C)Repurchasing shares of stock
D)Increasing fixed assets
E)Decreasing accounts receivable

Question 7

Which one of the following actions will decrease the operating cycle?

A)Increasing inventory
B)Paying suppliers faster
C)Paying for more inventory with cash rather than credit
D)Granting customers more time to pay for their credit purchases
E)Lessening the production time needed to manufacture a good for sale

Question 8

Accounts receivable financing is the term used to describe which one of the following types of loans that involve either the assignment or the factoring of a firm's accounts receivable?

A)Secured short-term loan
B)Unsecured short-term loan
C)Secured long-term loan
D)Unsecured long-term loan
E)Trust receipt loan

Question 9

Which of these best describes a line of credit?

A)Long-term, prearranged, committed bank loan
B)Short-term loan secured by accounts receivable
C)Short-term loan secured by inventory
D)Long-term, prearranged, non committed bank loan
E)Short-term prearranged bank loan that can be either committed or noncommitted

Question 10

Which one of these will increase the operating cycle?

A)Decreasing the days' sales in inventory
B)Decreasing the accounts payable period
C)Increasing the accounts receivable turnover rate
D)Decreasing the inventory turnover rate
E)Decreasing the accounts payable turnover rate

Question 11

Which of the following are inversely related to increases in a firm's current assets?
I.Reorder costs
II.Shortage costs
III.Restocking costs
IV.Carrying costs

A)I and III only
B)II and IV only
C)I, II, and III only
D)II, III, and IV only
E)I, III, and IV only

Question 12

Which one of the following will increase the operating cycle?

A)Decreasing the accounts payable period
B)Increasing the accounts payable turnover rate
C)Increasing the cash cycle
D)Decreasing the accounts receivable turnover rate
E)Decreasing the inventory period

Question 13

The accounts receivable period is the time that elapses between the _____ and the ____.

A)purchase of inventory; payment to the supplier
B)purchase of inventory; collection of the receivable
C)sale of inventory; payment to supplier
D)sale of inventory; collection of the receivable
E)sale of inventory; billing to customer

Question 14

The amount of time a firm holds inventory in stock is referred to as the:

A)inventory period.
B)accounts receivable period.
C)accounts payable period.
D)operating cycle.
E)cash cycle.

Question 15

Which one of the following is directly related to increases in a firm's current assets?

A)Reorder costs
B)Shortage costs
C)Restocking costs
D)Out-of-stock events
E)Carrying costs

Question 16

By definition, an inventory loan is which one of the following types of loan?

A)Secured short-term loan
B)Unsecured short-term loan
C)Secured long-term loan
D)Unsecured long-term loan
E)Trust receipt loan

Question 17

Which of the following are sources of cash?
I.Decreasing accounts receivable
II.Increasing inventory
III.Increasing accounts payable
IV.Increasing common stock

A)I and III only
B)II and IV only
C)II and III only
D)I and IV only
E)I, III, and IV only

Question 18

Moore & Moore has just finished projecting its expected cash receipts and expenditures for next year.What is this projection called?

A)Operating projection
B)Receivables schedule
C)Balance sheet
D)Cash budget
E)Compromise policy

Question 19

The length of time a retailer owes its supplier for an inventory purchase is called the:

A)inventory period.
B)accounts receivable period.
C)accounts payable period.
D)operating cycle.
E)cash cycle.

Question 20

Which one of the following commences on the day inventory is purchased and ends on the day the payment for the sale of that inventory is collected? Assume all sales and purchases are on credit.

A)Inventory period
B)Accounts receivable period
C)Accounts payable period
D)Operating cycle
E)Cash cycle

Question 21

Which of these is the most indicative of a flexible short-term financial policy?

A)High ratio of short-term debt to long-term debt
B)Relatively small investment in current assets
C)High ratio of current assets to sales
D)Low level of net working capital
E)Relatively low level of liquidity

Question 22

Which firm is most apt to have the shortest inventory period?

A)General merchandise retail store
B)Hardware store
C)Furniture store
D)Locomotive manufacturer
E)Delicatessen

Question 23

Suppose MMP changes its policy and starts requiring all of its customers to pay within 20 days rather than the 30 days that it currently allows.Which one of the following will result from this change?

A)Increase in receivables period
B)Increase in inventory period
C)Decrease in cash cycle
D)Increase in operating cycle
E)Increase in accounts payable period

Question 24

Which statement is true?

A)The inventory period increases as the inventory turnover rate increases.
B)The length of the inventory period depends on the length of the cash cycle.
C)The inventory period is the average number of days a firm holds inventory on its shelves.
D)The inventory period is equal to the operating cycle minus the accounts payable period.
E)The inventory period has no effect on the cash cycle.

Question 25

Which industry is most apt to have the shortest operating cycle?

A)Toy store
B)Car manufacturer
C)Local restaurant
D)Furniture store
E)Plastics manufacturer

Question 26

The operating cycle:

A)illustrates the sources and uses of cash.
B)is equal to the cash cycle plus the accounts receivable period.
C)begins when a product is sold to a customer.
D)is based on a 360-day year.
E)describes how a product moves through the current asset accounts.

Question 27

Tri-City Grocers is a chain of grocery stores that just hired a new CFO.Which of the following actions would you expect this CFO to adopt given her statement that she wants to implement a more flexible financing policy for the firm?
I.Easing the credit terms given to customers
II.Increasing the amount of inventory carried by each grocery store
III.Borrowing funds to keep more cash available for store operations
IV.Decreasing the firms' investments in marketable securities

A)I and III only
B)II and IV only
C)I, II, and III only
D)II, III, and IV only
E)I, II, III, and IV

Question 28

An increase in the accounts receivable period is most apt to:

A)lengthen the accounts payable period.
B)shorten the inventory period.
C)shorten the operating cycle.
D)lengthen the cash cycle.
E)shorten the accounts payable period.

Question 29

Which one of the following can occur if the operating cycle decreases while both the accounts receivable and the accounts payable periods remain constant?

A)Inventory period remains constant
B)Cash cycle increases
C)Inventory turnover rate increases
D)Accounts receivable turnover rate increases
E)Cash cycle remains constant

Question 30

Which statement is true?

A)If a firm decreases its inventory period, its accounts receivable period will also decrease.
B)The longer the cash cycle, the more cash a firm typically has available to invest.
C)A firm would prefer a negative cash cycle over a positive cash cycle.
D)Decreasing the inventory period will automatically decrease the payables period.
E)Both the operating cycle and the cash cycle must be positive values.

Question 31

Which statement is true?

A)A decrease in the accounts receivable turnover rate decreases the cash cycle.
B)Paying a supplier within the discount period rather than waiting until the end of the normal credit period will decrease the cash cycle.
C)The number of days in the cash cycle can be positive, negative, or equal to zero.
D)An increase in the inventory turnover rate must increase the cash cycle.
E)The payables period must be shorter than the receivables period.

Question 32

Which of the following tend to rise when a firm switches to a flexible financial policy from a restrictive financial policy?
I.Restocking costs
II.Price reductions to offset limited selection
III.Storage costs
IV.Current asset opportunity costs

A)I and II only
B)III and IV only
C)I, III, and IV only
D)I, II, and III only
E)II, III, and IV only

Question 33

Which of the following costs will tend to increase if a firm switches to a restrictive short-term financial policy from a flexible short-term policy?
I.Lost sales due to out-of-stock items
II.Inventory warehousing costs
III.Cash-outs
IV.Total annual order costs

A)I and III only
B)II and IV only
C)I, III, and IV only
D)I, II, and IV only
E)I, II, III, and IV

Question 34

Which of these is most apt to decrease the cash cycle?

A)Decreasing the credit period granted to a customer
B)Decreasing the inventory turnover rate
C)Decreasing the accounts payable period
D)Decreasing the accounts receivable turnover rate
E)Increasing the receivables period

Question 35

Which of these is most apt to decrease the accounts receivable period for a store that has both cash and credit sales?

A)Increasing the time granted to customers to pay for purchases
B)Lengthening the cash cycle
C)Increasing customer discounts for cash payment
D)Selling inventory slower
E)Paying suppliers faster

Question 36

A flexible short-term financial policy will tend to have more of which of the following than a restrictive short-term financial policy will?
I.Uncollectable accounts receivable
II.Work stoppages for lack of raw materials
III.Carrying costs
IV.Obsolete or out-of-date inventory

A)I and II only
B)III and IV only
C)II and III only
D)I, II, and III only
E)I, III, and IV only

Question 37

All else held constant, which of these statements is correct concerning the accounts payable period?

A)The accounts payable period is equal to 360/(Sales/Average accounts payable).
B)A decrease in the accounts payable period will increase the operating cycle.
C)An increase in the accounts payable period will decrease the cash cycle.
D)A decrease in the accounts payable period will decrease the operating cycle.
E)An increase in the accounts payable turnover rate decreases the cash cycle.

Question 38

Which activity is most apt to reduce the inventory period for a grocery store?

A)Replacing slow-moving items with faster-selling products
B)Replacing fresh foods with canned goods
C)Decreasing the amount of discounts offered to customers
D)Increasing the amount of inventory on hand
E)Decreasing the number of times the inventory turns over per year

Question 39

Which of these actions is indicative of a restrictive short-term financial policy?

A)Granting increasing amounts of credit to customers
B)Expanding the number of inventory items carried
C)Increasing the firm's investment in the current accounts
D)Minimizing the cash balances held by the firm
E)Investing relatively large amounts in marketable securities

Question 40

The cash cycle is equal to the:

A)inventory period minus the accounts payable period.
B)operating cycle plus the accounts payable period.
C)operating cycle minus the accounts receivable period.
D)accounts receivable period minus the accounts payable period plus the inventory period.
E)inventory period minus the accounts receivable period minus the accounts payable period.

Question 41

A committed line of credit:

A)guarantees that a set amount of funds will be available to a firm for a stated period of time regardless of events that might occur during that time period.
B)is a guarantee that a bank will purchase a firm's accounts receivable at full value.
C)provides greater assurance than a noncommitted credit line that funds will be available when needed by a firm.
D)guarantees that any funds borrowed during a stated period of time will be charged the lowest rate of interest the lending bank offers to any of its customers.
E)is a loan arrangement for a stated period of time which is free of all costs and fees other than the actual interest paid on the funds borrowed.

Question 42

The Appliance Giant has annual credit sales of $2,846,334 and cost of goods sold of $2,112,882.The average accounts receivable balance is $47,280.How many days on average does it take the firm to collect its accounts receivable?

A)5.64 days
B)7.97 days
C)8.94 days
D)8.17 days
E)6.06 days

Question 43

Which characteristic applies to commercial paper?

A)Maturities of 270 days or more
B)Offerings registered with the SEC
C)Interest rates higher than comparable bank loans
D)Issued directly by large-sized firms
E)Issued primarily by low-rated firms

Question 44

Which statement related to a cash budget is correct?

A)Capital expenditures are treated as a cash inflow on a cash budget.
B)The cumulative surplus is computed prior to adjusting for the minimum cash balance.
C)A positive net cash inflow for a period indicates the cash disbursements exceed the cash collections for the period.
D)Financially healthy firms can have a negative quarterly net cash inflow.
E)Firms generally set the minimum cash balance at zero for planning purposes.

Question 45

The HOT Truck operates several specialty vehicles that provide hot food and beverages for firms that have workers employed in outlying regions.The company has annual sales of $489,500.Cost of goods sold average 59 percent of sales and the profit margin is 6.1 percent.The average accounts receivable balance is $41,700.On average, how long does it take this food truck to collect payment for its services?

A)27.84 days
B)28.17 days
C)31.09 days
D)38.33 days
E)41.90 days

Question 46

Alderson Metals is compiling a cash balance projection by quarter for next year.Which one of the following adjustments to this projection will decrease the cumulative surplus?

A)Reducing payroll costs from its current projection amount
B)Decreasing the accounts receivable period by changing the firm's credit policy effective the first of next year
C)Receiving more favorable credit terms from the firm's suppliers
D)Increasing the dividend per share on the firm's outstanding common stock
E)Refinancing the firm's long-term debt at a lower interest rate

Question 47

Gaming Station has to restock a popular electronic game every five days as it completely sells out in that period of time.What is the inventory turnover rate for this game?

A)115 times
B)105 times
C)99 times
D)118 times
E)73 times

Question 48

The Happy Flapjack Diner increased its operating cycle from 72 days to 74 days while the cash cycle decreased by 3 days.How have these changes affected the accounts payable period?

A)Decreased by 5 days
B)Decreased by 4 days
C)Decreased by 2 days
D)Increased by 2 days
E)Increased by 5 days

Question 49

The High Water Mark is operating at its optimal point.Which one of the following conditions exists given this firm's operating status?

A)Carrying costs exceed shortage costs
B)Carrying costs are equal to zero
C)Both carrying costs and shortage costs are at their minimum levels
D)Shortage costs are equal to zero
E)Shortage costs equal carrying costs

Question 50

The accounts receivable turnover rate for Tough Pants Clothing has gone from an average of 12.6 times to 14.1 times per year.How has this change affected the firm's accounts receivable period?

A)Decrease of 1.98 days
B)Decrease of 3.08 days
C)Decrease of 3.28 days
D)Increase of 3.28 days
E)Increase of 3.08 days

Question 51

To ensure an unsecured line of credit is used solely for short-term purposes, the loan arrangement frequently includes which one of the following?

A)Cleanup period
B)Grace period
C)Revolver
D)Factoring arrangement
E)Lien on the borrower's inventory

Question 52

Dexter Companies has a conventional factoring arrangement with its local bank.Which of these would be a common characteristic of that type of financing arrangement?

A)Dexter Companies will receive the full amount of the accounts receivable included in this arrangement on an agreed upon date sometime in the future.
B)The responsibility for collecting the covered receivables lies with Dexter Companies.
C)Any bad debt that results from an account receivable included in this arrangement will be a cost to the bank.
D)Dexter Companies will pay a monthly fee to the bank and in turn will receive payment for the full amount of its accounts receivable.
E)The arrangement keeps the receivables as an asset of Dexter Companies but places a lien on those accounts in favor of the lending bank.

Question 53

Which statement is correct?

A)Firms should generally finance all of their assets with long-term debt.
B)Firms that follow restrictive financial policies can generally avoid short-term debt financing.
C)Short-term borrowing is generally more expensive than long-term borrowing.
D)Long-term interest rates tend to be more volatile than short-term rates.
E)A firm is less apt to face financial distress if it adopts a flexible financial policy rather than a restrictive policy.

Question 54

Birdview Construction has the following current account values.These accounts represent a net _____ of cash for the period in the amount of ____.

A)source; $3,100
B)source; $100
C)use; $100
D)source; $3,200
E)use; $3,200

Question 55

The Corner Store is a small-sized, general store that stocks a minimal level of basic supplies and offers gasoline to a rural community.Which type of credit is probably best-suited for financing this store's inventory?

A)Trust receipt financing
B)Receivables factoring
C)Field warehousing
D)Blanket inventory lien
E)Receivables assignment

Question 56

Which type of financing is generally used by new car dealers to finance their inventories?

A)Blanket inventory lien arrangement
B)Trust receipt loans
C)Committed line of credit
D)Trade credit financing
E)Field warehousing financing

Question 57

Generally speaking, which of the following situations will occur if a seasonal company adopts a compromise financial policy?
I.Periods where short-term financing is required
II.Less long-term debt than if the firm followed a restrictive financial policy
III.Periods of excess funds which can be invested in short-term marketable securities
IV.Lower investment in fixed assets than if the firm adopted a flexible financial policy

A)I only
B)II only
C)I and III only
D)II and IV only
E)I, III, and IV only

Question 58

Wrecker Automotive has sales for the year of $356,450, cost of goods sold equal to 59 percent of sales, and an average inventory of $42,500.The profit margin is 6 percent and the tax rate is 21 percent.How many days on average does it take the firm to sell an inventory item?

A)75.68 days
B)81.46 days
C)73.76 days
D)78.74 days
E)82.03 days

Question 59

Dover Wholesalers sells products exclusively to Benn Retailer.Benn Retailer buys exclusively from Dover Wholesalers.Dover Wholesalers has a receivables period of 44 days, an inventory period of 8 days, and a payables period of 63 days.Benn Retailer has an inventory period of 15 days, a receivables period of 22 days, and a payables period of 44 days.Which statement is correct given this information?

A)Dover Wholesalers has a shorter operating cycle than does Benn Retailer.
B)Benn Retailer has an operating cycle of 81 days.
C)It takes Benn Retailer less time to collect payment on a sale than it does for the firm to sell its inventory.
D)Dover Wholesalers is financing 100 percent of Benn Retailer's operating cycle.
E)Dover Wholesalers has a cash cycle of 11 days.

Question 60

A company has the following account balances.Which statement is correct concerning these balances?

A)Accounts receivable is a $1,400 source of cash.
B)Common stock is a $3,500 use of cash.
C)Net working capital, excluding cash, is a $6,100 use of cash.
D)Long-term debt is a $1,700 source of cash.
E)Total debt is a $2,400 source of cash.

Question 61

Kar's currently has a 208-day operating cycle.The company is concentrating on increasing its inventory turnover rate from 7.9 to 8.2 times.What will the firm's new operating cycle be if it can effectively make this change?

A)206.31 days
B)209.69 days
C)207.14 days
D)208.86 days
E)207.64 days

Question 62

The Cash and Grab Market has annual sales of $913,200 and cost of goods sold of $681,600.The profit margin is 3.8 percent and the accounts payable period is 24 days.What is the average accounts payable balance?

A)$64,818
B)$55,488
C)$44,818
D)$60,211
E)$60,046

Question 63

The Warehouse has projected sales for June through September of $56,700, $68,900, $70,200, and $54,300.The company collects 46 percent of its sales in the month of sale, 51 percent in the month following the month of sale, and 2 percent in the second month following the month of sale.The remaining sales are never collected.What is the amount of the August collections?

A)$65,863
B)$68,565
C)$62,158
D)$67,288
E)$65,516

Question 64

The Green Pickle has estimated quarterly sales for next year, starting with Quarter I, of $18,600, $21,300, $24,500, and $19,600.The accounts receivable period is 18 days.What is the expected accounts receivable balance at the end of the third quarter? Assume each month has 30 days.

A)$4,333
B)$4,900
C)$4,500
D)$4,667
E)$4,600

Question 65

Show Place Decor has estimated quarterly sales for next year, starting with Quarter 1, of $38,600, $53,400, $48,900, and $69,800.Purchases are equal to 62 percent of the following quarter's sales and the accounts payable period is 30 days.Assume each month has 30 days.What is the estimated accounts payable balance at the end of Quarter 2?

A)$10,106
B)$9,520
C)$11,624
D)$14,425
E)$14,200

Question 66

Metropolitan Realty currently has 54 days in its cash cycle and 98 days in its operating cycle.The firm purchases its entire inventory from one supplier.This supplier has offered a 2.5 percent discount on all purchases if Metropolitan will pay in 7 days.If the market opts to take advantage of the discount offered, its new operating cycle will be _____ days and its new cash cycle will be _____ days.

A)98; 105
B)88; 81
C)98; 81
D)98; 91
E)95;81

Question 67

Bee's Honey currently has an inventory turnover of 28.6, a payables turnover of 10.8, and a receivables turnover of 14.4.How many days are in the cash cycle?

A)4.31 days
B)2.70 days
C)16.51 days
D)24.39 days
E)32.20 days

Question 68

Coolman Outdoor has estimated monthly sales for February through May of $12,480, $13,260, $13,910, and $14,820, respectively.If the accounts receivable period is 45 days, how much will be collected in May? Assume each month has 30 days.

A)$12,800
B)$12,870
C)$14,365
D)$13,585
E)$12,850

Question 69

Candy Supplies purchases are equal to 68 percent of the following quarter's sales.Assume each month has 30 days, the accounts receivable period is 30 days, and the accounts payable period is 45 days.The estimated quarterly sales for next year, starting with Quarter 1, are $38,900, $40,600, $58,900, and $69,200, respectively.How much will the firm pay its suppliers in the third quarter?

A)$41,379
B)$46,811
C)$44,514
D)$40,947
E)$43,554

Question 70

Furniture Outlet has an accounts receivable period of 63 days and an accounts payable period of 87 days.The company turns over its inventory 4.3 times per year and marks up the inventory an average of 38 percent over its wholesale cost.What is the length of the firm's operating cycle?

A)125.36 days
B)147.88 days
C)89.22 days
D)60.88 days
E)125.68 days

Question 71

Brilliant J Company has estimated quarterly sales for next year, starting with Quarter 1, of $16,974, $18,696, $21,279, and $20,295.Purchases are equal to 60 percent of the following quarter's sales.What is the cash outlay for accounts payable for Quarter 3 if the firm has a 30-day accounts payable period? Assume each month has 30 days.

A)$12,250.80
B)$12,373.80
C)$12,486.67
D)$12,966.67
E)$12,503.33

Question 72

The Lumber Yard has projected sales for April through July of $152,400, $161,800, $189,700, and $196,400, respectively.The firm collects 52 percent of its sales in the month of sale, 46 percent in the month following the month of sale, and the remainder in the second month following the month of sale.What is the amount of the July collections?

A)$189,819
B)$181,508
C)$122,852
D)$175,500
E)$192,626

Question 73

The Brown Squirrel has estimated sales for January through May of $14,700, $16,900, $23,500, $36,700, and $42,300, respectively.Assume there are 30 days in each month and the accounts receivable period is 45 days.How much should the firm expect to collect in May?

A)$36,700
B)$20,200
C)$30,100
D)$28,450
E)$39,500

Question 74

A company has expected sales for January through April of $9,800, $9,500, $13,800, and $9,500, respectively.Assume each month has 30 days and the accounts receivable period is 38 days.How much does the company expect to collect in the month of May?

A)$10,646.67
B)$15,880.00
C)$9,720.00
D)$12,213.33
E)$15,406.00

Question 75

Geoff's Entertainment has a receivables turnover rate of 17.8 a payables turnover rate of 12.5 and an inventory turnover rate of 24.9.What is the length of the firm's operating cycle?

A)34.89 days
B)39.80 days
C)35.61 days
D)43.86 days
E)49.71 days

Question 76

AW Jones has annual sales of $2.438 million.The cost of goods sold is equal to 81 percent of sales.The average accounts receivable balance is $197,800 and the average accounts payable balance is $205,735.How many days on average does it take the firm to pay its suppliers?

A)30.83days
B)45.22 days
C)41.31 days
D)38.03 days
E)29.61days

Question 77

NuParts, Inc., has estimated quarterly sales for next year, starting with Quarter 1, of $15,900, $16,800, $17,500, and $16,400.Purchases are equal to 67 percent of the following quarter's sales and the accounts payable period is 60 days.Assume 30 days in each month.How much will the firm owe its suppliers at the end of Quarter 3?

A)$7,066.67
B)$7,816.67
C)$7,506.67
D)$7,325.33
E)$6,933.33

Question 78

AC Sales has estimated quarterly sales for next year, starting with Quarter 1, of $16,200, $17,300, $18,700, and $20,400.If purchases are equal to 72 percent of the following quarter's sales, what is the estimated amount of purchases for Quarter 2?

A)$12,960
B)$14,688
C)$12,456
D)$13,464
E)$13,720

Question 79

The Shoe Tree currently has an operating cycle of 199 days and a cash cycle of 54 days.The company is implementing some changes that will reduce the inventory period by 11 days, decrease the receivables period by 6 days, and decrease the accounts payable period by 4 days.How many days will be in the new cash cycle once all of these changes become effective?

A)35 days
B)45 days
C)41 days
D)33 days
E)38 days

Question 80

Robert's Cards and Gifts has estimated quarterly sales for next year, starting with Quarter 1, of $43,930, $47,495, $37,835, and $91,655.The accounts receivable period is 13 days.What is the expected accounts receivable balance at the end of the second quarter? Assume each month has 30 days.

A)$6,068.39
B)$13,239.06
C)$6,860.39
D)$6,345.44
E)$5,465.06