Chapter 07: Current Asset Management
Current Asset Management
In the management of cash and marketable securities, why should the primary
concern be for safety and liquidity rather than maximization of profit?
Chapter 04: Financial Forecasting
What are the basic benefits and purposes of developing pro forma statements and
a cash budget?
The pro-forma financial statements and cash budget enable the firm t
Chapter 05: Operating and Financial Leverage
Operating and Financial Leverage
Discuss the various uses for break-even analysis.
Such analysis allows the firm to determine at what level of operations it
will break even (
Chapter 09: Time Value of Money
Time Value of Money
How is the future value (Appendix A) related to the present value of a single
sum (Appendix B)?
The future value represents the expected worth of a single amount, wher
Under what circumstances would it be advisable to borrow money to take a
It is advisable to borrow in order to take a cash discount when the cost of
borrowing is less than the cost of foregoing the discou
Chapter 06: Working Capital and the Financing Decision
Working Capital and the Financing Decision
Explain how rapidly expanding sales can drain the cash resources of a firm.
Rapidly expanding sales will require a buildu