A firm desires to increase its ratio of cash flow from operations divided by average current liabilities from its anticipated level of 30 percent for the coming year to a more desirable level of 40 percent. Which of the following actions is consistent with this increase?
a. increase short-term bank borrowing
b. decrease the number of days that accounts receivable are outstanding
c. decrease the number of days accounts payable are outstanding
d. increase the number of days inventories are held
e. none of the above
B
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Answer the following statement true (T) or false (F)
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Indicate whether the statement is true or false.
Which of the following represents the correct order in which the indicated budget documents for a manufacturing company would be prepared?
A. Sales budget, cash budget, direct materials budget, direct labor budget. B. Production budget, sales budget, direct materials budget, direct labor budget. C. Marketing and administrative expense budget, budgeted income statement, cash budget, budgeted balance sheet. D. Sales budget, cash budget, production budget, direct materials budget.
Any lawful contract can potentially form the basis for an action based on wrongful inÂterference with a contractual relationship.
a. true b. false