FIN 534 – Homework Chapter 16
AccGuruFIN 534 – Homework Chapter 16
1. Summary balance sheet data for Greener Gardens Co. is shown below (in thousands of dollars). The company is in a highly seasonal business, and the data show its assets and liabilities at peak and off-peak seasons:
Peak | Off-Peak | ||
Cash | $ 50 | $ 30 | |
Marketable securities | 0 | 20 | |
Accounts receivable | 40 | 20 | |
Inventories | 100 | 50 | |
Net fixed assets | 500 | 500 | |
Total assets | $690 | $620 | |
Payables and accruals | $ 30 | $ 10 | |
Short-term bank debt | 50 | 0 | |
Long-term debt | 300 | 300 | |
Common equity | 310 | 310 | |
Total claims | $690 | $620
| |
From this data we may conclude that
2. Which of the following statements is CORRECT?
3. Other things held constant, which of the following would tend to reduce the cash conversion cycle?
4. Which of the following actions would be likely to shorten the cash conversion cycle?
5. Which of the following is NOT directly reflected in the cash budget of a firm that is in the zero tax bracket?
13 years ago
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