Blog

A treasury manager is assessing the performance of the company’s short-term investment portfolio which includes the following investments:  Security          Amount ($)                 Yield (%)           AA                      150,000                       4.3                    BB                      200,000                         5.2 CC                      50,000                           1.2 Find the overall return of the portfolio.

Which of the following statements regarding credit lines is incorrect?

Which of the following indicates the variability of a given distribution of net cash flows?

_________ is an accountingtechnique used to forecast cash flows.

You are given the following sample of daily net cash flows?               Day            NCF        1              $50,000                2              $65,000                                                                         3             $75,000                                                                     4             $80,000                                                                       5                                                                                    a) what will be your forecast in period 5, using a 2-day moving average b) what will be your forecast in period 5, using a 3-day moving average c) If the actual cash flow on day 5 is 75,000, which method provides the better forecast? Explain

The market in which a treasury manager would purchase a previously issued money market security is referred to as the:

Develop a cash budget for the next three months using the information provided below.                Monthly sales forecasts are $150,000, $180,000, and $60,000 (June, July, August)                The current month’s sales are $120,000 (May)              Cost of goods sold equals 65% of sales                Lease payment= 22,000 per month                The company is required to pay an installment of $120,000 for  a note (debt)              The cash position at the end of the current month is $80,000              The target cash balance is $50,000              Assume that 60% of sales are collected in the month sold and the remaining collected in the following month.    

Assume that your company’s last net cash flow equaled $60,000 and the last forecast for net cash flow was $75,000. Given an alpha of 0.8, forecast the next cash flow using the exponential smoothing approach. If your forecast for next month’s cash flows is 80,000, the last cash flow was 100,000 and the last forecasted cash flow was $60,000, find alpha.

Which of the following would most likely decrease the payables level?

Which of the following current assets is most liquid?