Which of the following might be associated with a lengthening working capital cycle?
A: Higher net operating cash flow
B: Decreasing depreciation expenditure
C: Quicker inventory turnover
D: Taking less time to pay suppliers
A: Higher net operating cash flow
B: Decreasing depreciation expenditure
C: Quicker inventory turnover
D: Taking less time to pay suppliers
举一反三
- Which of the following is NOT a reason why cash flow may not equal net income? A: Amortization is added in when calculating net income. B: Changes in inventory will change cash flows but not income. C: Capital expenditures are not recorded on the income statement. D: Depreciation is deducted when calculating net income.
- _____ refers to the difference between a firm's current assets and its current liabilities. A: Operating cash flow B: Capital spending C: Net working capital D: Cash flow from assets
- Which of the following statement is not true? A: The initial investment in working capital is a cash outflow at the ending of the project for items such as inventories B: Working capital is recaptured at the end of the project when working capital is no longer required C: Depreciation is not a current cash outflow. D: Discounted cash flow methods automatically provide for a return of the original investment, thereby making a deduction for depreciation unnecessary
- Which of the following is required in order to calculate the operating cash flow? A: EBIT B: depreciation C: taxes D: interest
- Which<br/>one of the following will not affect the operating cycle?() A: decreasing<br/>the payables turnover from 7 times to 6 times B: increasing<br/>the days sales in receivables C: decreasing<br/>the inventory turnover rate D: increasing<br/>the average receivables balance E: decreasing<br/>the credit repayment times for the firm’s customers