Reference no: EM132969654

Problem 1: Current assets include the following, except:

Option 1: Temporary investments (financial instruments).

Option 2: Cash in cash and banks.

Option 3: Accounts receivable.

Option 4: Short-term accounts payable

Option 5: Inventories.

Problem 2: Working capital policies These are basic decisions aimed at the efficient management of resources, the desired level of investment in them (Current assets) and how they should be financed (Short-term liabilities).

Select one:

True

False

Problem 3: Current assets at the end of 2020 of a company totaled $ 55 MM, short-term liabilities totaled $ 65 MM, and long-term liabilities amounted to $ 25 MM. Please select the correct answer:

Option 1: The net working capital is negative by - $ 30MM.

Option 2: The liquidity ratio is 0.95.

Option 3: The company has sufficient net working capital.

Option 4: The net working capital is positive by $ 30MM.

Option 5: None of the above is correct.