PCU - Corporate Finance (1).pdf x + File C/Users/acer/Downloads/PCU%20-%20Corporate%20Finance%20(1).pdf To 13 of 78 a + V Draw Highlight Erases 3 D Page view A Read aloud Gleim CPA Test Prep: Business 200 139 Gleim #: 8.1.11 The Herb Salter Corporation is considering a plant expansion that will increase ils sales and net income. The following data represent management's estimate of the impact the proposal will have on the company Cash Accounts payable Accounts receivable Inventory Marketable securities Mortgage payable (current) Fixed assets Net inoong Current $ 120,000 360,000 400,000 360,000 180,000 160,000 2.300,00 400,000 Proposed $ 140,000 450,000 550.000 420,000 180,000 310,000 3.200.000 550,000 The effect of the plant expansion on Salter's net working capital will be an) A. Increase of $240.000 B. Decrease of S10,000. C. Increase of S230,000 D. Increase of $10,000. 140 Gleim #: 8.1.12 As a company hecomes more conservative with respect to working capital financing policy, it would tend to have an) A. Increase in the ratio of current liabilities to noncurrent liabilities. B. Decrease in the operating cycle. C. Decrease in the quick ratio. D. Increase in the ratio of current assets to concurrent assets. |41| Gleim #: 8.2.18 In comparing the current ratios of two companies, why is it invalid to assume that the 1 Type here to search OBE X 30C Mostly cloudy 20 7:00 PM 8/9/2021