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firms that are so weak that they cannot obtain financing from any other source estion 2 (5 points) Which of the following statements regarding working
firms that are so weak that they cannot obtain financing from any other source estion 2 (5 points) Which of the following statements regarding working capital policy is NOT CORRECT? A company should hold a relatively large amount of cash or marketable securities, or have an adequate line of credit, if its sales tend to fluctuate in an uncertain manner. Because credit policy influences both sales and the average collection period, its credit policy affects a firm's working capital position. The cash budget is useful when estimating a firm's financing needs during the budget period. Carrying very low inventories reduces inventory carrying costs, but low inventories can result in lost sales and production stoppages. Working capital involves only current assets and current liabilities, hence a firm's working capital policy plays no role in capital budgeting decisions. Question 3 (5 points) Other things held constant, which of the following will cause an increase in net working capital? Cash is used to buy marketable securities 2 3 5 6 9
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