===> In general, the reduction of an asset is a source of funds. True or False
==> The sustainable growth rate is the maximum growth rate achievable over an extended period of time. True or False
==>The cash conversion cycle is calculated as:
Top of Form
Days in Inventory + Collection Period
Days in Inventory – Payables Period
Days in Inventory + Collection Period – Payables Period
None of the above
Bottom of Form
A company can shorten its cash cycle by:
Top of Form
Reducing inventory turnover
Reducing account payables
Reducing days receivable
None of the above
Bottom of Form
A company has a retention rate of 50%, sales of $25,000, beginning equity of $50,000 and profit margins of 10%, an asset turnover ratio of .75 and debt of $10,000. What is its sustainable growth rate?
Top of Form
2.5%
1.7%
3.75%
Not enough information given
Bottom of Form
Scenario analysis is a way of testing forecasts by changing one assumption at a time.
Top of Form
True
False
Bottom of Form
Biases can and should always be eliminated in financial forecasts.
Top of Form
True
False
Bottom of Form
Which of the following is commonly used in preparing pro forma statements:
Top of Form
Historical financial statements
Projected sales
Efficiency ratios
All of the above
Bottom of Form
Pro forma statements are:
Top of Form
Summaries of historical financial statements
Government-mandated analyses of financial statements
Projected statements used in financial planning
Estimated tax liabilities
Bottom of Form
Which of the following liabilities form part of a company’s “real” activities?
I. Short-term debt
II. Accounts payable
III. Accrued operating expenses
IV. Long-term debt
Top of Form
III only
II and III
I and IV
I only
Bottom of Form