When managing Working Capital, if company leadership employs an Aggressive Asset Mix Strategy, which of the following is NOT true regarding that strategy?

The strategy will invest excess working capital in less liquid investments than a more conservative strategy

Risk will be higher than a more conservative strategy

Compared to a conservative strategy, the aggressive strategy is attempting to maximize financial returns on excess working capital

The strategy results in higher liquidity than a more conservative strategy

Which of the following is NOT true regarding the various analytical methods of financial decision analysis that we discussed in class?

		Time value of money discounting can be performed using a business calculator, a spreadsheet like Excel or financial tables.
		It is important to use the accrual basis of accounting and not cash flow when performing the analyses
		Payback Period analysis does not require time value of money discounting
		It is often more informative to use more than one analytical method to make a final financial decision

Which method of project financial analysis does not use time value of money discounting?

		NPV
		Payback Period
		PV of Ordinary Annuity
		IRR

The Theta Healthcare Group of Richardson has the following cash flow projected over the next 5 years for an X-Ray machine:

Years 0 1 2 3 4 5

Investment ($80,000)

Operating Cash Flow ($1,000) $35,000 $48,000 $55,000 $55,000

In which year does the Theta X-ray machine reach PAYBACK?

		Year 4
		Year 1
		Year 3
		Year 5
		Year 2

B&B Docs had the following:

April May June

Net Accounts Receivable $5,000 $3,000 $2,000

Net Patient Revenue $40,000 $30,000 $30,000

Net Accounts Payable $4,000 $3,000 $2,500

For the month of June only, what is the Receivables as a % of revenue?

		8.0%
		10.0%
		12.5%
		6.7%

plz and asap