Which of the two definitions of Working Capital is more intuitive?
5. Question 5 Which of the two definitions of Working Capital is more intuitive? 1 point Current Assets – Current Liabilities, because current means for working. LT Debt…
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Working Capital is defined as:
4. Question 4 Working Capital is defined as: 1 point Current Liabilities – Current Assets. Long-term debt + Equity – Fixed Assets, and not Current Assets – Current…
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What is NFO?
2. Question 2 What is NFO? 1 point NFO is Normal Fund Obligations, and is an asset. NFO is Need of Funds for Operations, and is an asset….
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When we forecast receivables, inventory and payables,
1. Question 1 When we forecast receivables, inventory and payables, 1 point we should not take into account operational ratios. it’s better to use the most recent ratios….
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When doing a forecast of the Balance Sheet:
7. Question 7 When doing a forecast of the Balance Sheet: 1 point In the forecast, cash and credit are always the last items we fill in. …
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Imagine now that sales are €720 like in the previous question, days of collection are 120 and days of inventory are 90. The company manages a just-in-time delivery that reduces dramatically days of inventory to 10. At the same time, the marketing department, to win new customers and reward existing customers, increases the days of collection to 200. Therefore:
5. Question 5 Imagine now that sales are €720 like in the previous question, days of collection are 120 and days of inventory are 90. The company manages a just-in-time…
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If sales now grow 20% and days of collection are 120 like in question 1, then:
4. Question 4 If sales now grow 20% and days of collection are 120 like in question 1, then: 1 point Receivables also grow 20% and thus will be…
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For questions 1 to 5: A commercial company initially sells €600 a year. Sales are uniform. COGS = 70% of sales. Question: If receivables = €200, what are the days of collection?
1. Question 1 For questions 1 to 5: A commercial company initially sells €600 a year. Sales are uniform. COGS = 70% of sales. Question: If receivables = €200, what…
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If long-term debt is €800 in 2015, and I pay back 10% every year of the original €1,000 loan that I received in 2013, and in 2016 I ask for a new loan of €100, then the total amount in long-term debt at the end of 2016 will be:
11. Question 11 If long-term debt is €800 in 2015, and I pay back 10% every year of the original €1,000 loan that I received in 2013, and in 2016…
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If equity in 2015 = €600, net income in 2016 = €200 and dividends paid in 2016 = €50, what is the equity at the end of 2016?
10. Question 10 If equity in 2015 = €600, net income in 2016 = €200 and dividends paid in 2016 = €50, what is the equity at the end of…