Summertime Adventures is a seasonal firm that enjoys its highest sales during July and August. The company purchases inventory one month before it is sold and pays for its purchases 60 days after the invoice date. Which one of the following statements is supported by this information?

Hibler Restaurant Supply has sales of $756,300. The cost of goods sold is equal to 48 percent of sales. Accounts receivable has a beginning balance of $62,800 and an ending balance of $64,400. How long, on average, does it take to collect the receivables?

A company is considering a project with a cash break-even point of 26,394 units. The selling price is $19 per unit, the variable cost per unit is $7, and depreciation is $89,800. What is the projected amount of fixed costs?

Which of the following statements regarding the aftertax cost of debt is accurate?

Mercado is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .98 percent per month. Currently, the firm sells 420 units per month at $736 per unit. Under the new policy, the firm expects sales of 475 units also at $736 per unit. The variable cost per unit is $426. What is the NPV of switching?

Meryl Enterprises currently has an operating cycle of 76.4 days. The company is implementing some operational changes that are expected to increase the accounts receivable period by 2.2 days, decrease the inventory period by 5.3 days, and increase the accounts payable period by 1.5 days. What is the new operating cycle expected to be?

Assume you invest in a portfolio of long-term corporate bonds. Based on the period 1926–2019, what average annual rate of return should you expect to earn?

A company has a project available with the following cash flows: Year Cash Flow 0 −$ 32,150 1 13,050 2 14,740 3 20,780 4 11,960 If the required return for the project is 9.5 percent, what is the project’s NPV?

Mayhew Pet Foods has a beginning accounts payable balance of $43,100 and an ending accounts payable balance of $39,700. Sales for the period were $565,300 and costs of goods sold were $216,900. What was the payables turnover rate?

A project is expected to provide cash flows of $12,450, $12,800, $15,900, and $10,400 over the next four years, respectively. At a required return of 8.7 percent, the project has a profitability index of .876. For this to be true, what is the project’s cost at Time 0?