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Unformatted text preview: Name:Nguyen Khanh Son Class:Batch 2 Chapter 16 Questions: 16-2 Cash Conversion Cycle (CCC): The length of time funds are tied up in working capital or the length of time between paying for working capital and collecting cash from the sale of the working capital. Holding other things constant, a firms profitability would increase if it lowered its CCC because that will lower interest charges. 16-3 Two definitions of cash: Operating short-term securities, which are held primarily to provide liquidity and are bought and sold as needed to provide funds for operations Other short term securities, which are holdings in excess of the amount needed to support normal operations. Treasuries use the term, they often mean currency and demand deposits in addition to very safe highly liquid marketable securities that can be sold quickly at a predictable price and thus be converted to bank deposits....
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- Spring '11