Reference no: EM132980058

Question - Examine the following statement critically: A company's inventory should be at a level where the benefits of holding cash outweigh the costs of holding cash.

The best inventory management model is EOQ.

The most important role in corporate finance is working capital management.

The DDC company employs 575 people. Several eligible employees have been paid sick and family leave wages as required by the TTCD. They are aware that the amounts required to be paid under the TTCD will be eligible for refundable credits on their 2020 tax return. They are in desperate need of financial assistance right now. Is it possible to get payments in advance before they file their 2020 taxes?

a. Their only option is to submit a Form 7200 request for an advance credit for eligible wages plus allocable health insurance costs and the DDC share of Medicare costs on the eligible wages.

b. Keep any payroll tax deposits that would normally be sent in and, if the refundable credits exceed the required payroll deposits, submit a Form 7200 request for an advance for the difference.

c. DDC is only allowed to keep payroll tax deposits in order to receive an advance on these credits. Any money left over after payroll tax deposits must be reclaimed on their 2020 tax return.

d. These credits will not be available until the company files its 2020 tax return.

What is the definition of receivables turnover ratio and is its example of how it is used.