Generally speaking a firm would prefer a days in inventory to be _____. high enough to maintain 7 days of inventory higher high enough to maintain 30 days of inventory lower Inventory turnover can be improved by _____. increasing the average inventory reducing sales reducing the cost of goods sold reducing the amount of carried inventory Supply chain management will examine all but which of the following? Production strategy All are addressed in supply chain management Inventory management Distribution strategy Inventory turnover shows _____. how long a company’s inventory is in transit how long a company’s inventory can be stored before it becomes obsolete how many times a company’s inventory is sold and replaced over a period how many times a company’s inventory is in the production cycle before final delivery _____ would not be a reason to keep inventory. Time lag issues Economies of scale Variations in product lines Uncertainty about demand and supply Days' sales of inventory outstanding examines _____. the amount of time it takes to secure adequate inventory for production the amount of time it takes to secure adequate inventory for sales the amount of time it takes to convert inventory to cash the amount of time it takes to convert inventory into sales An example of an investing activity that would be included in the cash flow
statement is _____. Purchase an asset Changes in inventory Depreciation Payment of dividends 2 Cash flow from operating activities include all of the following except _____. Interest received on loans Depreciation Receipts for the sale of goods Payments of dividends 3 The sum of the net cash from all three sections will equal _____. the external financing needed, if any cash and equivalents on the balance sheet cash position from the cash budget cash available to common shareholders from the income statement 4 An example of a financing activity that would be included in the cash flow statement is _____. Depreciation Payment of dividends Interest received on loans Sales of an asset A statement of cash flow ____. is required by the OPBC is required by the SEC is required by GAAP is required by the Board Statement of cash flows are commonly completed on a _____ basis. Daily Weekly Monthly Quarterly In order to construct the statement of cash flows a preparer will need _____. The balance sheet Pro Forma income statement Statement of Owner’s Equity The cash budget The cash flow statement reconciles _____ with _____. Cash available to shareholders – actual cash Balance sheet movements – actual cash Balance sheet movements – net income
Net income – actual cash It is possible to have a company show a(n) _____ and produce a loss of cash.