Question 1 2 pts Definition of a company's Net Working Capital: Cash less capital equipment Accounts payable less accounts receivable Taxes due plus taxes paid Current assets less current liabilities Question 2 hing 2 pts All of the following items are true about Working Capital (WC) Management EXCEPT? Only pertain to long-term assets and debts The art of controlling current assets and current liabilities Maintain adequate cash and inventory Goals include maximizing Return on Assets (ROA) and minimize payments to settle liabilities Question 3 2 pts A company / industry that specializes in FLOAT and why? Warren Buffet / Berkshire Hathaway, the insurance industry. Collect premiums up front and may pay later for claims / natural disasters. McDonald's, the fast food industry. Table velocity Ford Motor, the auto industry. International trade via ocean bome vessels. Apple, the cell phone industry. Wireless payment plans. Question 4 2 pts In class, we learned about Ernesto's Skateboard Company (ESS) and the Operating Cycle 'Paper' Trail. Which of the following is TRUE? ESS receives invoices and raw materials from Vendors Customers will NEVER send cash to pay ESS invoices ESS ships finished goods product to Vendors O A Purchase Order (PO) is only issued during manufacturing, ESS sends to customers only. Question 5 2 pts The goal of accounts receivable management is to: Increase sales by offering credit to customers Reduce accounts payable and vendor commitments Obtain the highest possible return on cash Give credit to every customer Question 6 2 pts Factoring is the process of selling receivables to ugother firm at a: O Discount from the original sales price. Price equal to the sales price. O Premium above the original sales price. Prime lending rate