Munchs Mulch has the following current account values for the year.

Account Beginning Balance Ending Balance

Accounts receivable $1,300 $1,450

Inventory 2,100 1,900

Accounts payable 1,500 1,250

These accounts represent a net _____ of cash for the year of:

Select one:

a.

sources; $150

b.

uses; $200

c.

uses; $250

d.

sources; $100

e.

uses; $100

The Lackluster Co. has three divisions. Division A has been in existence the longest and has the most stable sales. Division B has been in existence for ten years and is slightly less risky than the overall firm. Division C is the research and development side of the business. When allocating funds, the Lackluster Co. should probably: Select one: a. require the highest rate of return from division A since it is the oldest division. b. assign the highest cost of capital to division C because it is most likely the riskiest of the three divisions. c. use the firms WACC as the cost of capital for divisions A and B. d. allocate the funds evenly to maintain the current capital structure of the firm. e. allocate the least amount of funds to division C since it is involved only with research and development.