Financial Management: Theory & Practice
16th Edition
ISBN: 9780357296776
Author: Eugene F. Brigham, Michael C. Ehrhardt
Publisher: Cengage Learning US
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Question
Chapter 12, Problem 2Q
Summary Introduction
To choose: The items which rises spontaneously with rises in sales.
Expert Solution & Answer
Explanation of Solution
Accrued wages, accounts payable and accrued taxes rise spontaneously.
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Students have asked these similar questions
Some liability and net worth items increase spontaneously with increases insales. Put a check (✓) by the following listed items that typically increasespontaneously:Notes payable to banks______________________
16. What do you call for the likelihood of loss due to customers are not paying their amounts owing?
a.
Discount risk
b.
Credit risk
c.
Payment risk
d.
Loss risk
Which one of the following statements is correct?
A.
If a firm decreases its inventory period, its accounts receivable period will also decrease.
B.
The longer the cash cycle, the more cash a firm typically has available to invest.
C.
A firm would prefer a negative cash cycle over a positive cash cycle.
D.
Decreasing the inventory period will also decrease the payables period.
E.
Both the operating cycle and the cash cycle must be positive values.
Chapter 12 Solutions
Financial Management: Theory & Practice
Ch. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - What is meant by the term “self-supporting growth...Ch. 12 - Suppose a firm makes the following policy changes...Ch. 12 - Broussard Skateboard’s sales are expected to...Ch. 12 - Berman & Jaccor Corporation’s current sales and...Ch. 12 - Smiley Corporations current sales and partial...Ch. 12 - Maggie’s Muffins Bakery generated $5 million in...Ch. 12 - At year-end 2019, Wallace Landscapings total...
Ch. 12 - The Booth Company’s sales are forecasted to double...Ch. 12 - Upton Computers makes bulk purchases of small...Ch. 12 - Stevens Textile Corporations 2019 financial...Ch. 12 - Hatfield Medical Supplys stock price had been...Ch. 12 - Use the AFN equation to estimate Hatfield’s...Ch. 12 - Prob. 3MC
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