RWJ16

MKTG (with Marketing CourseMate with eBook Printed Access Card)

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CHAPTER 16 SHORT-TERM FINANCIAL PLANNING Answers to Concepts Review and Critical Thinking Questions1. These are firms with relatively long inventory periods and/or relatively long receivables periods. Thus,such firms tend to keep inventory on hand, and they allow customers to purchase on credit and take arelatively long time to pay. 2. These are firms that have a relatively long time between the time purchased inventory is paid for andthe time that inventory is sold and payment received. Thus, these are firms that have relatively shortpayables periods and/or relatively long receivable cycles. 3. a. Use: The cash balance declined by $200 to pay the dividend. b. Source: The cash balance increased by $500 assuming the goods bought on payables credit weresold for cash. c. Use: The cash balance declined by $900 to pay for the fixed assets. d. Use: The cash balance declined by $625 to pay for the higher level of inventory. e.
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RWJ16 - CHAPTER 16 SHORT-TERM FINANCIAL PLANNING Answers to...

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