Part 7 Applied Financial Intelligence

Question 1

Companies that can generate more _____ in less ____ have greater freedom of action; they aren’t so dependent on outside investors or lenders.

Answer 1

Cash; Time

Question 2

Define Working Capital

Answer 2

Category of resources that includes cash, inventory, and receivables minus whatever a company owes in short term: Working capital = current assets - Current liabilities

Question 3

What is the cycle of capital and production?

Answer 3

Cash -> Raw Materials inventory -> Finished-goods Inventory -> receivables -> cash…