The Harvester collects 25 percent of sales in the month of sale, 60 percent of sales in the month following the month of sale

Which one of the following statements is correct?    A.  A firm with a restrictive financing policy secures sufficient long-term financing to fund all its assets. B.  A firm with a flexible financing policy frequently invests in marketable securities. C.  A firm with a flexible financing policy tends to use short-term financing on a frequent basis. D.  Firms tend to avoid short-term financing under both restrictive and flexible financing policies. E.  Firms with seasonal sales select flexible financing policies. Refer to section 18.3

45.

Which one of the following statements is correct?    A.  Seasonal needs are financed externally when firms adhere to a flexible financing policy. B.  A flexible financing policy tends to increase the risk of encountering financial distress. C.  Long-term interest rates tend to be less volatile than short-term rates. D.  Most firms tend to finance inventory with long-term debt. E.  Short-term interest rates are generally higher than long-term rates. Refer to section 18.3

46.

Assume each month has 30 days and a firm has a 60-day accounts receivable period. During the second calendar quarter of the year, that firm will collect payment for the sales it made during which of the following months?    A.  October, November, and December B.  November, December, and January C.  December, January, and February D.  January, February, and March E.  February, March, and April Refer to section 18.4

47.

The Harvester collects 25 percent of sales in the month of sale, 60 percent of sales in the month following the month of sale, and 15 percent of sales in the second month following the month of sale. During the month of April, the firm will collect:    A.  60 percent of February sales. B.  15 percent of April sales. C.  60 percent of March sales. D.  15 percent of March sales. E.  25 percent of February sales. Refer to section 18.4