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.