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Other things held constant, which of the following will cause

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Other things held constant, which of the following will cause an increase in net working capital?
a. Long-term bonds are retired with the proceeds of a preferred stock issue.
b. A cash dividend is declared and paid.
c. Cash is used to buy marketable securities.
d. Merchandise is sold at a profit, but the sale is on credit.
e. Missing inventory is written off against retained earnings.

Other things held constant, which of the following would tend to reduce the cash conversion cycle?
a. Refuse to take any discounts that are offered and pay on the net date.
b. Carry a constant amount of receivables as sales decline.
c. Place larger orders for raw materials to take advantage of price breaks.
d. Take all discounts that are offered.
e. Offer longer payment terms to customers
Submitted: 6 years ago.
Category: Homework
Expert:  Linda_us replied 6 years ago.

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