# 2. One technique to shorten the time it takes to gather cash receipts is to: 3. Calculating three ratios (a) Average Days in Accounts Receivable, (b) Average Days in Inventory,

2. One technique to shorten the time it takes to gather cash receipts is to: 3. Calculating three ratios (a) Average Days in Accounts Receivable, (b) Average Days in Inventory, and (c) Average Days in Accounts Payable) can us predict total cash flow cycle lengths. The formula for estimating the overall cash flow cycle time using these three ratios is: 4. The quantity of cash that should be kept is determined by four factors: Transaction Amount (which includes compensatory balances), Precautionary Amount, Speculative Amount, and Financial Amount. As a general rule, keep the following amount of cash on hand: 5. Assume that you have \$4,000 in cash on hand, \$ 28,000 in planned cash inflows, and \$ 39,000 in expected cash outflows. You aim to end up with a \$2,000 cash balance. is the total amount of cash you expect to be short? 6. Spontaneous finance, often known as trade credit, is a method of obtaining additional funds by: 7. There are two main methods for borrowing against accounts receivable: 8. In order to secure finance against your goods, it must meet the following criteria: 9. Ajax and Miller are two of your company’s most important clients. For the current month, Ajax owes you \$10,000 and Miller owes you \$20,000. Ajax pays 70% of the time in the current month and 30% of the time the following month, according on collection probabilities. Miller pays 40% of the time in the current month and 60% of the time the following month, according on collection probabilities. is the total amount of cash receipts for the current month based on projected values? 10. One of the first symptoms of cash flow problems is:

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