1.

Question1

When we forecast receivables, inventory and payables,

1 point

we should use the initially theoretical ratios.

it's better to use the most recent ratios.

we should not take into account operational ratios.

it doesn't really matter which ratios we use, the real or the policies.

2.

Question2

What is NFO?

1 point

NFO means Need of Funds for Operations, and is a liability.

NFO is Need of Funds for Operations, and is an asset.

NFO means Negative Financing Obligations.

NFO is Normal Fund Obligations, and is an asset.

3.

Question3

What is Working Capital?

1 point

WC is the capital used to finance fixed assets.

WC is the difference between NFO and long-term debt.

WC is the capital needed to fund operations.

WC is the long-term funding available to finance NFO.

4.

Question4

Working Capital is defined as:

1 point

Current Liabilities - Current Assets.

Long-term debt + Equity - Fixed Assets, or Current Assets - Current Liabilities.

Long-term debt + Equity - Fixed Assets, and not Current Assets - Current Liabilities.

Short-term debt + Equity - Long term Assets.

5.

Question5

Which of the two definitions of Working Capital is more intuitive?

1 point

Current Assets - Current Liabilities, because current means for working.

CA - CL, because it's simpler.

LT Debt + Equity - FA because it takes into account the FA.

LT Debt + Equity - FA, because the definition CA - CL makes you think it is an asset, when in fact it's a liability, a source of capital.

6.

Question6

If sales are 200 and NFO is 5% of sales, and payables is 30 and inventory 20, then days of receivables is:

1 point

36 days

65 days

90 days

25 days

7.

Question7

A good diagnosis has to be: (Check all that apply) (Video Lecture 6)

1 point

Concise

Brief

Concrete

Primary

Clear

8.

Question8

The diagnosis of Polypanel's problem is that:

1 point

The NFO grows faster than the WC.

There is a deterioration of Operational Ratios.

The credit needed grows.

There is not enough long-term debt.

9.

Question9

A good solution to this problem can be to:

1 point

Get more shareholders to increase capital.

Increase long-term debt, as it will increase the working capital.

Reduce fixed assets.

Improve margins.

10.

Question10

A company with sales of 250 and NFO of 50, with a Net Income of 25 can grow sustainably only up to:

1 point

250%

50%

25%

100%

11.

Question11

If the bank charges 6% interest, days of suppliers are 30, and the supplier offers me an early payment (0 days) discount of 0.5%, then:

1 point

I should take the discount, and not use the credit from the bank, as both are costly.

I am indifferent between using credit and taking the discount from the supplier, because the cost is the same.

I should not take the discount, and use the credit from the bank.

I should take the discount, and use the credit from the bank, as the bank is cheaper.