Multiple Choice Question 51
You are provided the following working capital information for the Ridge Company:
Ridge Company
Account
$
Inventory
$12,890
Accounts receivable
12,800
Accounts payable
12,670
Net sales
$124,589
Cost of goods sold
99,630
Cash conversion cycle: What is the cash conversion cycle for Ridge Company?
38.3 days
46.4 days
83.5 days
129.9 days
Find the final exam answers here FIN 571 Final Exam
Multiple Choice Question 58
The cash conversion cycle begins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales. estimates how long it takes on average for the firm to collect its outstanding accounts receivable balance. shows how long the firm keeps its inventory before selling it. begins when the firm invests cash to purchase the raw materials that would be used to produce the goods that the firm manufactures.
Multiple Choice Question 30
Payout and retention ratio: Drekker, Inc., has revenues of $312,766, costs of $220,222, interest payment of $31,477, and a tax rate of 34 percent. It paid dividends of $34,125 to shareholders. Find the firm's dividend payout ratio and retention ratio.
85%, 15%
55%, 45%
15%, 85%
45%, 55%
Download now FIN 571 Entire Course
Multiple Choice Question 75
Firms that achieve higher growth rates without seeking external financing are highly leveraged. none of these. have less equity and/or are able to generate high net income leading to a high ROE. have a low plowback ratio.
Multiple Choice Question 67
The strategic plan does NOT identify working capital strategies. the lines of business a firm will compete in. major areas of investment in real assets. future mergers, alliances, and divestitures.
Multiple Choice Question 41
Which of the following does maximizing shareholder wealth not usually account for?
The timing of cash flows.
Amount of Cash flows.
Risk.
Government regulation.
Multiple Choice Question 80
Which of the