11. Which of the following changes in a firm's working capital management is most likely to result in a shorter operatin

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answerhappygod
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11. Which of the following changes in a firm's working capital management is most likely to result in a shorter operatin

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11. Which of the following changes in a firm's working
capital management is most likely to result in a shorter operating
cycle?
A. Reducing stock-outs by carrying greater quantities of
inventory.
B. Stretching its payables by paying on the last permitted
date.
C. Changing its credit terms for customers from 2/10, net 60 to
2/10, net 30.
12. The use of secondary sources of liquidity would most
likely be considered:
A. a normal part of daily business for a company.
B. a signal that a company's financial position is
deteriorating.
C. a lower-cost source of short-term financing compared to
primary sources of
liquidity.
13. A firm's debt-to-equity ratio is most likely to increase as
a result of a(n):
A. extra dividend.
B. stock dividend.
C. purchase of a machine for cash.
Please explain each one of the answers.
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