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119. The optimal cash replenishment level will decrease with all of the following changes
EXCEPT:
120. The operating cycle will increase with all of the following changes EXCEPT:
121. The operating cycle will decrease with all of the following changes EXCEPT:
122. Safety stock is referred to as the:
123. All of the following are examples of carrying costs EXCEPT:
124. All of the following are examples of carrying costs EXCEPT:
125. Which of the following will decrease the operating cycle?
126. Which of the following will increase the operating cycle?
127. "The net amount of current assets that the firm has to fund, above and beyond those that
someone else funds for them" is referred to as:
128. Would a firm ever use short-term debt to finance permanent current assets? Why or why
not?
129. If a firm needs to keep minimum cash balance on hand and faces both cash inflows and
outflows, which cash management strategy would be most appropriate for the firm to use?
130. In Japan, many consumers pay their bills by electronic deduction from their checking
accounts instead of using paper checks. What effect do you think this has on the collection float
of Japanese firms versus that of American firms?
131. If demand for a firm's products suddenly slows down so that inventory increases while
sales decrease, how will the firm's needs for net working capital react?
132. If a firm is going to take a loan with a bank that has a compensating balance requirement,
how does that affect the amount of money the firm must borrow?
133. When a firm is determining which current asset policy would work best for them, what
factors must they consider?
134. Carrying costs are associated with having current assets and fall into two general
categories. List those two categories.
135. Detail the major differences between the three inventory loan types.
136. A firm may keep part of its capital tied up in cash for three primary reasons. List the
reasons and explain each.
137. List and explain the "five C's" of credit analysis.
