If a firm has purchases of $50,000, a starting inventory of $35,000 and the cost of goods sold is $45000, what is the dollar amount of its ending inventory?

		$40,000
		$80,000
		$85,000
		$130,000

Profitable and growing firms may run short on cash because:

		of rapid decrease in accounts receivables
		of rapid growth in accruals
		of rapid growth in accounts payable
		of spontaneous increases in receivables and inventories

The necessary adjustment(s) to the operating expenses amount shown on the income statement to arrive at cash paid for operating expenses is(are):

		subtract the change in operating accruals
		subtract depreciation expense
		subtract the change in operating accruals and subtract depreciation expense
		subtract the change in accounts payable and add the change in inventories
		add the change in accounts payable and subtract the change in inventories

In adjusting a company's income statement to arrive at cash flow from operations, the proper treatment of the period's change in interest payable is:

to ignore it, in that it represents a non-operating item

to add it to interest expense

to subtract it from interest expense

none of the above

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

The ability of a company to augment its future cash flows, cover unforeseen cash needs, or take advantage of unforeseen opportunities, is referred to as:

		liquidity
		solvency
		financial flexibility
		the net liquidity balance

The current ratio and the quick ratio are best characterized as ________________ ratios.

		Liquidity
		Solvency
		financial flexibility
		net liquid balance

Days inventory held is a measure of the

		average time elapsing from the time an order is placed until it is shipped
		average inventory level multiplied by the number of days in the period
		average length of time an inventoried item is in stock before it is sold
		none of the above

A net increase in cash and equivalents from the 2002 statement of cash flows is equivalent to

		the cash generated by operations for 2002
		the change in cash and equivalents from 2001 to 2002 balance sheets
		the change in retained earnings balances from 2001 to 2002 balance sheets
		the net cash provided in 2002 by external funds

A given period's net cash from operations differs from that period's net income due to

		the depreciation expense, depletion, and amortization for the period
		the change in accounts receivable over the period
		the change in gross fixed assets over the period
		a and b
		a, b, and c

A given period's net cash from operations differs from that period's net income due to

		the depreciation expense, depletion, and amortization for the period
		the change in accounts receivable over the period
		the change in gross fixed assets over the period
		a and b
		a, b, and c

Lambda is developed from a function of the likelihood that a firm will exhaust its

		Its cash resources
		Its resources in total assets
		Its liquid resources
		Its resources in fixed assets

Sustainable growth rate is the sales growth rate that

		requires new outside debt
		can be supported by the firm