11. Which of the following changes in a firm's working capital management is most likely to result in a shorter operating cycle?

A. Reducing stock-outs by carrying greater quantities of inventory.

B. Stretching its payables by paying on the last permitted date.

C. Changing its credit terms for customers from 2/10, net 60 to 2/10, net 30.

12. The use of secondary sources of liquidity would most likely be considered:

A. a normal part of daily business for a company.

B. a signal that a company's financial position is deteriorating.

C. a lower-cost source of short-term financing compared to primary sources of

liquidity.

13. A firm's debt-to-equity ratio is most likely to increase as a result of a(n):

A. extra dividend.

B. stock dividend.

C. purchase of a machine for cash.

Please explain each one of the answers.