1.

Question1

For questions 1 to 5: A commercial company initially sells 600 a year. Sales are uniform. COGS = 70% of sales.

Question:If receivables = 200, what are the days of collection?

1 point

90 days

30 days

60 days

120 days

2.

Question2

If inventory = 105, what are the days of inventory?

1 point

90 days

120 days

180 days

60 days

3.

Question3

The days of collection change to 90 days. You will therefore have in receivables:

1 point

300

150

250

100

4.

Question4

If sales now grow 20% and days of collection are 120 like in question 1, then:

1 point

The company is doing better, and receivables will actually decrease 20%.

Receivables also grow 20%, and thus will be 280.

Receivables will not change; they will stay at 200.

Receivables also grow 20% and thus will be 240.

5.

Question5

Imagine now that sales are 720 like in the previous question, days of collection are 120 and days of inventory are 90. The company manages a just-in-time delivery that reduces dramatically days of inventory to 10. At the same time, the marketing department, to win new customers and reward existing customers, increases the days of collection to 200. Therefore:

1 point

The need of financing increases.

We will need to use less credit, because the need of financing decreases.

The needs of financing do not change, given that the decrease of inventory days (80) are compensated with the increase of collection days (80).

This fact has nothing to do with needs to finance operations.

6.

Question6

When we do a forecast of the P&L:

1 point

We only start with a P&L forecast if we have finished with the balance sheet forecast.

We don't need to make assumptions, only for the balance sheet.

The line of credit in the P&L is always below the gross margin.

We always first make a forecast of sales.

7.

Question7

When doing a forecast of the Balance Sheet:

1 point

In the forecast, cash and credit are always the last items we fill in.

We start with credit lines and cash to make sure financing is secured.

Receivables, inventory, and payables are always the last thing we fill in.

Fixed assets depend on the amount of credit.

8.

Question8

We use cash or credit as a figure to plug in in order to balance the Balance Sheet. If total assets > (total liabilities + equity), where will the difference go?

1 point

Credit

Cash

9.

Question9

If a company invests as much in fixed assets as it charges in the depreciation per year, then:

1 point

The fixed assets in the balance sheet will remain the same.

The fixed assets in the balance sheet will decrease.

The fixed assets in the balance sheet will increase.

10.

Question10

If equity in 2015 = 600, net income in 2016 = 200 and dividends paid in 2016 = 50, what is the equity at the end of 2016?

1 point

550

750

600

800

11.

Question11

If long-term debt is 800 in 2015, and I pay back 10% every year of the original 1,000 loan that I received in 2013, and in 2016 I ask for a new loan of 100, then the total amount in long-term debt at the end of 2016 will be:

1 point

850

700

800

750