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6. If the construction supplies were considered to be inventory instead of supplies what impact would that have on the Quick ratio?

1. No Impact

2. Decrease

3. Increase

7. If an accelerated depreciation method is used, how would that impact the required Working Capital?

1. No Impact

2. Increase

3. Decrease

8. If an accelerated depreciation method is used, how would that impact the required Current Ratio?

1. Decrease

2. No Impact

3. Increase

9. Which of the following items do you think could improve the bank required metrics? Consider each item independently.

Select all that apply.

1.Focus on increase in sales revenue only.

2. Owner can invest more funds in the business.

3. Raise the price to increase the sales revenue.

4. Reduce the accounts receivables balance.

5. Focus on reducing cost only.

10. How would you report the balance of the notes payable on the balance sheet on December 31, of the year the loan was taken out? Choose all that apply.

1.The Portion due the second year is reported in the Current section.

2.The portion that is due the next year is reported in the Long-Tern section.

3.The portion that is due the second year is reported in the Long-Tern section.

4.The Portion due the next year is reported in the Current section.