Which of the following would most likely decrease the payables level?

(8 points) Problem 2 MUST SHOW YOUR WORK A seller is considering extending trade credit to an existing customer who buys on cash terms. The customer has just placed a sales order (cash terms) for immediate delivery of 300 units at a sales price per unit of $12. The customer states that they will increase their sales order by 20% if they receive a 90-day credit period. Variable costs are $3 per unit and involve an immediate cash outflow. If the seller has an annual opportunity cost rate of 12%, what is the NPV of extending credit to the customer?

Show Your Work Sunny Industries had sales of $1080 million and a cost of goods sold of $660 million in 202X. A simplified balance sheet for the firm appears below:   Sunny Industries Balance Sheet As of December 31, 202X (millions of dollars)   Assets     Liabilities and Equity   Cash 25   Accounts payable 60 Accounts receivable 85   Notes payable 425 Inventory 90   Accruals 45 Total current assets 200   Total current liabilities 530 Net plant, property, and equipment 6100   Long term debt 2725 Total assets 6300   Total liabilities 3255       Common equity 3045       Total liabilities and equity 6300   a.  Calculate Sunny’s Days Inventory Held   b. Calculate Sunny’s Days Sales Outstanding   c. Calculate Sunny’s Days Payable Outstanding   d. Calculate Sunny’s cash conversion cycle

(8 points) Problem 5 MUST SHOW YOUR WORK For this question fill in the blank and comment on the trend in these values.     Year 2023 Year 2024       Cash & Equivalents   9.8 13.7 Accounts Receivable   9.4 11.0 Inventories 49.4 48.4 Prepaid Expenses    0.5   1.0       Accounts Payable  15.0 10.0 Accrued Liabilities 4.3  5.8 Short-term Debt 5.9  7.9 Accruals 0.5  0.6 Current Ratio     Quick Ratio     NWC     WCR      

Which of the following would decrease a firm’s cash conversion cycle?

The difference between a firm’s operating cycle and its cash cycle is

Which of the following calculates the probability of a firm having liquidity problems?

Which of the following current assets is most liquid?

USE THE FOLLOWING FACT SET TO ANSWER QUESTIONS 31 – 33: Walt Disney Corp. prepares its Statement of Cash Flows using the indirect method and had the following statements prepared as of December 31, 2025: Additional Data for 2025: Net Income = $41,000 Depreciation of plant assets = $12,700 Sold land for $33,000 cash Paid cash dividends of $15,000 Purchased equipment for $26,500 cash Purchased equipment for $60,000 by issuing a long-term note payable Paid $40,000 long-term note payable by issuing common stock   QUESTION 31 –> What amount will Walt Disney report as net cash provided (used) by Operating Activities?

USE THE FOLLOWING FACT SET TO ANSWER QUESTIONS 28 – 30: Viktor’s Airport Concession Co. prepares its statement of cash flows using the direct method for operating activities. For the year ended December 31, 2024, Navorski reports the following: Sales revenue                                                                         $3,210,000 Cost of goods sold                                                                  $1,575,000 Gross profit                                                                             $1,635,000 Operating expenses (including $5,000 in depr. exp.)          .    $95,000 Net income                                                                              $1,540,000 In addition, the following balance sheet accounts changed during 2024: Decrease in accounts receivable  $915,000 Increase in prepaid rent                 $16,700 Increase in inventory                      $72,000 Increase in accounts payable        $108,000 Decrease in salaries payable         $8,000 QUESTION 28 –> What is the amount of cash collections from customers reported by Navorski for the year ended December 31, 2024?