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ss. The best way to get a comprehensive picture of a firm's liquidity position is to examine its inflows and outflows which forecasts cash a.

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ss. The best way to get a comprehensive picture of a firm's liquidity position is to examine its inflows and outflows which forecasts cash a. cash and marketable securities b. net working capital c. current ratio d. cash budget 86. The cash conversion cycle is the length of time from a. the payment of accrued wages to manufacture a product until the sale of that product. b. payment of accrued wages to manufacture a product until the collection of accounts receivable associatecd with the sale of that product. the c. the e payment for the purchase of raw materials to manufacture a product until the sale of that product d. the payment for the purchase of raw materials to manufacture a product until the collection of accounts receivable associated with the sale of that product. 87. The is the average length of time required to convert materials into finished goods and then to sell those goods. a. payables deferral period b. receivables collection period c. cash conversion period d. inventory conversion period 88. The is the average length of time to convert the firm's receivables into cash. a. payables deferral period b. receivables collection period c. cash conversion period d. inventory conversion period 89. Working capital management involves decisions related to a. labor contracts b. current assets and liabilities c. fixed asset acquisition d. long term debt 90. Net working capital is defined as a. current assets plus current liabilities b. current liabilities c. current assets d. current assets minus current liabilities 91. Although short-term interest rates have historically averaged less than long-term rates, the debt is considered to be an aggressive working capital strategy because of the inherent risks of using short-term financing. a. True b. False

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