Dealers maintain inventory and quotes bid and ask prices

Assignment Help Financial Management

Reference no: EM131825258

1. CU Tech expects sales next year will be $4.8 million, a 25% increase over current sales. CU has total assets of $2.24 million, and all assets will increase proportionately with sales. CU has $1.49 million in current liabilities and a current ratio of 1.60 to 1. What total financing will CU need to support the expected sales increase?

$234,400

$187,500

No financing needed, surplus of $139,700

$48,800

2. In financial markets, dealers maintain inventory and quotes “bid” and “ask” prices. The ____ price is the price at which the dealer buys securities and is ____ than the ____ price.

A. ask; higher; bid

B. ask; lower; bid

C. bid; higher; ask

D. bid; lower; ask

Reference no: EM131825258

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