1. The necessary adjustment to the sales amount shown on the income statement to arrive at cash collections from customers is: a subtract the change in accounts receivable b add all the change in purchases c add the total amount of orders not yet shipped d none of the above 2. The necessary adjustment(s) to the cost of goods sold amount shown on the income statement to arrive at cash paid to suppliers is(are): a- subtract the change in accounts payables b -add the change in inventories c -subtract the change in inventories a and b a and c 3. Proper operational management involves managing so as to make a profit and managing working capital accounts so as to: minimize interest income maintain adequate liquidity and cash flow maximize interest expense maximize the investment in those accounts 4. The cash flow timeline indicates the amount of time over which monies are tied up in inventory and accounts receivable. It also indicates that an increase in the delay of payment for payables owed _____________ the cash conversion period, ______________ to the value of the firm. decreases, decreasing decreases, increasing increases, decreasing increases, increasing 5. If a firm has a target inventory of $40,000, a starting inventory of $25,000 and the cost of goods sold is $35000, what is the dollar amount of its purchases? $15,000 $20,000 $50,000 not enough information is provided