COGS are 80% of Sales. You collect 80% of sales in the month of sale and the remaining 20% in the mo Show more COGS are 80% of Sales. You collect 80% of sales in the month of sale and the remaining 20% in the month following the sale. You purchase 60% of your COGS in the month of sale and 40% in the month prior to the sale. You pay for 70% of purchases in the month that it is purchased and the remaining 30% in the month after it is purchased. 12. How much was Cash Used in February? a.4260 b. 4720 c. 5440 d. 6200 13. How much was Purchases in March? a.2360 b. 2920 c. 3560 d. 4320 14. What is the Accounts Receivable balance in January? a.4200 b. 4800 c. 5400 d. 5800 15. What is the Effective cost of trade credit if the terms are 1/15 net 40 assuming that you forego the discount and pay on the 40 th day? a.13.4% b. 15.8% c. 18.6% d. 21.7% 16. Suppose a firm starts using accelerated depreciation instead of straight-line depreciation (so their depreciation expense is higher). What effect would this have on their financial statements? a. The firms tax payments would increase. b. The firms net income would increase. c. The firms Additional Financing Needed would increase. d. The firms net cash flow would increase. Show less