Denver Interiors, Inc., has sales of $836,000 and cost of goods sold of $601,000. The firm had a beginning inventory of $36,000 and an ending inventory of $47,000

57.

Which one of the following statements is correct?    A.  The assignment of receivables involves selling the firm's accounts receivables at full price. B.  Lines of credit frequently require a cleanup period. C.  With maturity factoring, the borrower receives the loan amount immediately. D.  Commercial paper is short-term financing offered to highly-rated corporations by major banks. E.  Credit card receivables funding is a relatively inexpensive method of borrowing on a short-term basis. Refer to section 18.5

58.

Which of the following are benefits derived from short-term financial planning? I. having advance notice of when your firm will require external financing II. being able to determine the extent of time for which a loan is required III. having the ability to time capital expenditures in order to place the least financial burden possible on a firm IV. knowing for certain what your cash balance will be six months in advance    A.  I and III only B.  I, II, and III only C.  II, III, and IV only D.  I, II, and IV only E.  I, II, III, and IV Refer to section 18.6

59.

Denver Interiors, Inc., has sales of $836,000 and cost of goods sold of $601,000. The firm had a beginning inventory of $36,000 and an ending inventory of $47,000. What is the length of the inventory period?    A.  19.21 days B.  20.89 days C.  25.20 days D.  30.53 days E.  33.69 days Inventory turnover = $601,000/[($36,000 + $47,000)/2] = 14.481928 Inventory period = 365/14.481928 = 25.20 days