14-3

Which of the following will result in an increase in net working capital?

1. An increase in cash.
2. A decrease in accounts payable.
3. Ain increase in notes payable.
4. A decrease in accounts receivable.
5. An increase in inventory.

14-6

If a firms inventory turnover ratio increases, what will happen to the firms cash cycle?

14-22

What purpose does a discount on credit terms serve? What is the cost of such a discount to the offering firm?