Reference no: EM133144353
Chapter 14: questions 1, 2, 3, 4, 5, 6, 7 and 8 of the text.
1. Is it possible for a firm to have negative net working capital? How?
2. Would it be possible for a decision to deny credit to your customers to be value maximizing? How?
3. Which of the following will result in an increase in net working capital?
a. An increase in cash.
b. A decrease in accounts payable.
c. An increase in notes payable.
d. A decrease in accounts receivable.
e. An increase in inventory.
4. Would it be possible for a firm to have a negative cash cycle? How?
5. If a firm's inventory turnover ratio increases, what will happen to the firm's operating cycle?
6. If a firm's inventory turnover ratio increases, what will happen to the firm's cash cycle?
7. Everything else held constant, will an increase in the amount of inventory on hand increase or decrease the firm's profitability?
8. Would a firm ever use short-term debt to finance permanent current assets? Why or why not?
Attachment:- M Finance.rar