Sophia Finance Unit 4 Challenge 3_Complete Questions and Answers (Latest 2021/2022)

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Sophia Principles of Finance Unit 4 Challenge 3 1 — Working Capital What can a business that has too much working capital do to reduce it? Relax its customer credit policy 2 — Working Capita... l Financing Which of the following is a goal of working capital management? To meet day to day expenses while minimizing the cost of holding cash 3 — Cash Conversion Cycle A company has a 120-day operating cycle with 80 inventory days, 40 receivable days and 15 payable days. What is their cash conversion cycle? 105 4 — Cash Management When managing its cash, a company can make use of float to __________. hold on to cash for as long as possible 5 — Securities Management In what way are debt securities, equity securities and derivatives similar? They can all be converted to cash with little difficulty. This study source was downloaded by 100000831988016 from CourseHero.com on 04-19-2022 10:13:02 GMT -05:00 https://www.coursehero.com/file/66911521/Sophia-Finance-Unit-4-Challenge-3docx/ 6 — Accounts Receivable Place the following steps for developing a credit policy in the correct order of process: A: The company decides that it wants to prioritize a large volume of sales, even if it means accepting more bad debt B: The company decides that if a customer fails to pay, they will not pursue legal action. C: The company decides that it's willing to offer payment terms of 3/10, Net 30. A, C, B 7 — Inventory Management Which inventory technique measures inventory by dividing the total cost of goods available for sale by the total number of units in a period? Average cost 8 — Short-Term Financing Sumayyah wants to expand her successful T-shirt printing business, but she needs extra capital. She finances the expansion by asking her suppliers to extend the period of time before she must pay them for their goods. What type of financing resource is Sumayyah using? Trade credit [Show More]

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