Which of the following activities impacts the long-term cash flow?
A. Purchase inventory
B. Pay taxes
C. Pay rent and utilities
D. Purchase PP&E
Which of the following strategies is most likely to shorten the working capital funding gap?
A. Keep more inventory on hand
B. Provide discounts for customers
C. Extend credit for customers
D. Extend payment to suppliers
What's the company's working capital funding gap in days based on the information below?
Receivable days: 47.2
Inventory days: 34.5
Payable days: 45.6
Days in the period: 365
A. 36.1
B. 41.3
C. 32.9
D. 58.3
The cash conversion cycle measures:
A. The number of days it takes for a company to turn its resource inputs into cash
B. The composition of inventory in a manufacturing facility
C. The number of days cash is in the bank
D. The amount of cash needed to cover the operating and investing expenses
Calculate the net cash provided by the operating activities based on the information below:
Net income: 60,000
Depreciation: 25,000
Increase in accounts receivable: 12,000
Increase in inventory: 8,000
Increase in accounts payable: 15,000
A. 120,000
B. 90,000
C. 70,000
D. 80,000
