6. Question 6 If sales are €200 and NFO is 5% of sales, and payables is €30 and inventory €20, then days of receivables is: 1 point 90 days…
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…
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…
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….
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….
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. …
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…
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…
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…
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…
