Venture operating cycle and the cash conversion cycle

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First-round financing occurs primarily during which of the following life cycle stages?

a. development stage

b. startup stage

c. survival stage

d. rapid-growth stage

A major difference between a venture’s operating cycle and the cash conversion cycle is the conversion cycle includes the time to:

a. buy materials

b. produce a finished good

c.collect sales made on credit

d. pay suppliers for purchases on credit

A firm has the following balance sheet information (assume all numbers are average like total assets is average total assets and so on) : total assets = $100,000; current assets = $30,000; inventories = $10,000; cash = $5,000; total liabilities = $30,000; current liabilities = $15,000; notes payable = $2,000. What are the firm’s quick and NWC-to-Total-Assets ratios?

a. 1.00 and .13

b. 1.33 and .13

c. 1.00 and .15

d. 1.33 and .15

Reference no: EM131884300

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