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Fall 2014 A firm has an average age of inventory of 90 days, an average collection period of 30 days. and an average payment period of 40 days. The firm's operating cycle is days. A) 110 B) 130 C) 120 D) 70 2. 5) Which of the following assists companies in raising capital, advise firms on major transactions such as mergers or financial restructuring, and engage in trading and market making activities? A) mutual funds B) commercial banks C) investment banks D) securities exchanges 3. Which of the following legal forms of organization is most expensive to organize? A) sole proprietorships B) partnerships C) corporations D) limited partnership 4. A firm had the following accounts and financial data for 2014: SO $5050 500 125 Ses revenue Accounts receivable Interest expense Total operating expenses Accounts payable Cost of goods sold Preferred stock dividende Taxrate Number of common shares Outstanding 1.000 600 240 The firm's net profit after taxes for 2014 is A)$213.80 B) $320.40 C) $206.25 D) -$206.40 5. :) Which of the following is true of a secondary market? A) It is a market for an unlisted company to raise equity capital. B) It is a market in which short-term money market instruments such as Treasury bills are traded. c) 'It is a market in which preowned securities are traded. D) It is a market where securities are issued through private placement 6. A controller is commonly responsible for A) managing cash B) financial accounting C) managing credit activities D) financial planning 2 )A firm has a cash conversion cycle of 120 days, an average collection period of 50 days, and an average payment period of 25 days. The firm's average age of inventory is_ _ days. A) 45 B) 95 C) 125 DI 145

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