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35. Drawing, Inc. has sales of $860,000 and cost of goods sold of $450,000. The firm had a
beginning inventory of $50,000 and an ending inventory of $59,000. What is the length of the
days' sales in inventory?
36. Painting, Inc. has sales of $400,000 and cost of goods sold of $275,000. The firm had a
beginning inventory of $42,000 and an ending inventory of $38,000. What is the length of the
days' sales in inventory?
37. If a firm has a cash cycle of 25 days and an operating cycle of 80 days, what is its average
payment period?
38. If a firm has a cash cycle of 10 days and an operating cycle of 43 days, what is its average
payment period?
39. If a firm has a cash cycle of 47 days and an operating cycle of 92 days, what is its average
payment period?
40. If a firm has a cash cycle of 25 days and an operating cycle of 80 days, what is its
payables turnover?
41. If a firm has a cash cycle of 10 days and an operating cycle of 43 days, what is its
payables turnover?
42. If a firm has a cash cycle of 20 days and an operating cycle of 60 days, what is its
payables turnover?
43. If a firm has a cash cycle of 32 days and an operating cycle of 67 days, what is its
payables turnover?
44. If a firm has a cash cycle of 30 days and an operating cycle of 64 days, what is its average
payment period?
45. If a firm has a cash cycle of 25 days and an operating cycle of 57 days, what is its average
payment period?
46. If a firm has a cash cycle of 39 days and an operating cycle of 88 days, what is its average
payment period?
47. If a firm has a cash cycle of 18 days and an operating cycle of 29 days, what is its
payables turnover?
48. Would it be worth it to incur a compensating balance of $10,000 in order to get a 1-
percent-lower interest rate on a 1-year, pure discount loan of $500,000?
49. Would it be worth it to incur a compensating balance of $2,000 in order to get a 1.5-
percent-lower interest rate on a 1-year, pure discount loan of $100,000?
50. Would it be worth it to incur a compensating balance of $4,000 in order to get a 1.5-
percent-lower interest rate on a 1-year, pure discount loan of $300,000?
51. Would it be worth it to incur a compensating balance of $15,000 in order to get a 2-
percent-lower interest rate on a 1-year, pure discount loan of $1,000,000?
52. Would it be worth it to incur a compensating balance of $9,000 in order to get a 0.70
percent lower interest rate on a 1-year, pure discount loan of $250,000?
53. KJ Enterprises estimates that it takes, on average, three days for their customers'
payments to reach them, one day for the payments to be processed and deposited by their
bookkeeping department, and two more days for the checks to clear once they're deposited.
What is their collection float?
54. MC Enterprises estimates that it takes, on average, seven days for their customers'
payments to reach them, two day for the payments to be processed and deposited by their
bookkeeping department, and three more days for the checks to clear once they're deposited.
What is their collection float?
