1.

A company has the information about the following accounting numbers

Inventory = $21,200, Sales = $310,300, and Accounts Payable = $17,300.
Inventory Period
Receivables Period
Operating Cylce
Payables Period
Cash Cycle

2. The NFLX Corporation has a 30-day average collection period and wishe
Based on this and the information below, complete the following cash bud

Beginning receivables
Sales
Cash collections
Ending receivables

NFLX Corporation
Cash Budget (in millions)
Q1
Q2
Q3
120
90
120

Total cash collections

Total cash disbursements
Net cash inflow
Beginning cash balance
Net cash inflow
Ending cash balance
Minimum cash balance
Cumulative surplus (deficit)

-80

-160

150

-180

$5

3. If the interest rate in the Japan is 5%, the interest rate in the U.S. is 10%
what must be the forward exchange rate to prevent covered interest arbit

4. The inflation rate in the U.S. is projected at 6% per year for the next sev
The exchange rate is currently A$2.2. Based on relative PPP, what is the e

5. The British pound trades at $1.9735 in London and $1.9684 in New York

ounting numbers: Cost of Goods Sold = $175,000, Accounts Receivable = $16,900,

yable = $17,300. Show your calculation in detail for operating cycle and cash cycle.

period and wishes to maintain a $5 million minimum cash balance.

llowing cash budget.

Q4
120

-160

in the U.S. is 10%, the spot exchange rate is 120 Japanese yens per U.S. dollar,
red interest arbitrage?

r for the next several years. The Australian inflation rate is projected to be 2% during that
PPP, what is the expected exchange rate in two years?

9684 in New York. How much profit could you earn on each trade with $10,000?

$16,900,
ash cycle.

be 2% during that time.