Question: A high _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ is necessary if your company might have

A high ________________ is necessary if your company might have difficulty borrowing on short notice.A low ______________ might mean your company may have difficulty meeting its short-term obligations
Option A
Cash on Hand
Option B
Inventory
Option C
Capital Turnover
Option D
Working Capital balance

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Which statement does not correctly describe short-term financial decisions? Multiple Choice a. Most firms finance their investment in working capital with short-term debt b. Liquidity is particularly...

Q:

1.A firm purchases $32 million of materials from suppliers in January, $28 million in February and $25 million in March. Forty percent are supplied cash on delivery. The remainder needs to be paid...

Q:

Hi Tutor, Please find the attached document. I think you can choose the company for Coca-Cola, because the company information is everywhere. Page 0 of 42 Your Name Here Your Company Name Here Annual...

Q:

When a consumer withdraws $200 from her savings account and deposits the $200 into her checking account, Question 11 pts When a consumer withdraws $200 from her savings account and deposits the $200...

Q:

AlWasl Plumbing Company (WPC) has approached Etihad Bank (EB) with a request for AED2,000,000 in credit facilities to finance its working capital needs. EBs required rate of return on its loans is...

Q:

1. Read the case thoroughly and answer the questions that follow. 2. Use any relevant chapters as a guide to answer the questions. 3. Extra marks will be awarded for concise and clear answers 4....

Q:

MaDonna's has just completed an initial public offering. The firms sold 6 million shares at an offer price of $16 per share. The underwriting spread was $.50 per share. The price of the stock closed...

Q:

http://scholar.google.com/scholar_case? case=7296890772230669764&hl=en&as_sdt=6&as_vis=1&oi=scholarr WebImagesMore... Sign in Baldwin v. Zoradi, 123 Cal. App. 3d 275 - Cal: Court of Appeal, 5th...

Q:

ERIC AND KIPSY: COMPLEXITIES OF MANAGEMENT AND ORGANISATIONAL BEHAVIOUR Consider the plight of Eric Eric is a new manager of product information for a national firm which wholesales electrical...

Q:

ERIC AND KIPSY: COMPLEXITIES OF MANAGEMENT AND ORGANISATIONAL BEHAVIOUR Consider the plight of Eric Eric is a new manager of product information for a national firm which wholesales electrical...

Q:

The incubation period for the New Guinea Blue-Striped Lizard is normally distributed with mean 61 days and standard deviation 5 days. What percentage of lizards will hatch In 51 to 71 days? In 46 to...

Q:

How can accelerating the flow of cash improve ROI?

Q:

5. Calculating Cost of Preferred Stock (LO1) Coaldale Bank has an issue of preferred stock with a $3.75 stated dividend that just sold for $87 per share. What is the bank's cost of preferred stock?

Q:

A particle is moving in three dimensions and its position vector is given by; r(t) = (4, 4t + 2, 3t)i + (4, 5t - 2, 3)2 + (3, 3t + 3, 1t)k where r is in meters and t is in seconds. Determine the...