Use the Following Information to Determine a Firm's Cash Build

question 18

Multiple Choice

Use the following information to determine a firm's cash build: net sales = $150,000; net income = $15,000; beginning-of-period accounts receivable = $60,000; end-of-period accounts receivable = $90,000; and interest = $10,000.

• A)$15,000
• B)$30,000
• C)$60,000
• D)$120,000

Understand the concepts of hypothesis testing, including the null and alternative hypotheses.

Apply and interpret confidence intervals for different statistical parameters.

Understand the conditions for using the t-distribution and calculate degrees of freedom in hypothesis testing.

Understand the concept and application of matched and independent samples in hypothesis testing.

---

Definitions:

Continuous Future

A type of futures contract used in commodities trading that is synthesized from several futures contracts to create a continuous, seamless price series.

Stock Price

The cost at which a share of a company is bought or sold in the stock market.

Interest Rate

is the cost of borrowing money, expressed as a percentage of the total amount loaned, paid to lenders by borrowers for the use of the borrowed funds.

Expected Future Profits

The anticipated earnings or returns a company or investment is predicted to generate in the future, based on current trends or calculations.