1.) Analyzing a company's working capital, current ratio and quick ratio allows us to

a. determine the liquidity position of the company

b. determine the leverage position of a company

c. determine the capital structure of the company

2.) A company can calculate their quick ratio by excluding _______ from their current assets.

a. prepaid expenses

b. inventory

c. accounts receivable

3.) A line or credit with less than a year maturity used for purchase of inventory and/or bridge accounts receivables collection is an example of a

a. working capital line of credit

b. Bridge loan

c. Capex financing

4.) A promissory note has all of the following features except: (select one)

a. loan amount

b. interest rate

c. payment amount

d. maturity date

e. loan closing costs

5.) A bank agrees to lend to a company using their Accounts Receivables as collateral. The company has $1,000,000 in AR. The bank's advance rate is 75%. How much in AR is eligible to borrow against?

a. $750,0000

b. $250,000

c. $1,000,000