Pearson Etext For Foundations Of Finance -- Combo Access Card (10th Edition)
Pearson Etext For Foundations Of Finance -- Combo Access Card (10th Edition)
10th Edition
ISBN: 9780135639344
Author: Arthur J. Keown, John D Martin, J. William Petty
Publisher: PEARSON
Question
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Chapter 3, Problem 16SP

a)

Summary Introduction

To determine: Net working capital and debt ratio of the firm.

b)

Summary Introduction

To prepare: Statement of cash flows in 2018.

c)

Summary Introduction

To prepare: Changes in balance sheet.

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Ned's Co. has an average collection period of 45 days and an operating cycle of 130 days. It has a policy of keeping at least $10 on hand as a minimum cash balance, and has a beginning cash balance for the first quarter of $20. Beginning receivables for the quarter amount to $35. Sales for the first and second quarters are expected to be $110 and $125, respectively, while purchases amount to 80% of the next quarter's forecast sales. The accounts payable period is 90 days. What are the cash disbursements for the first quarter?   Question 4 options:   $92   $88   $76   $100   $110
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