Answer Choices:

1. a) 581.73 b) 623.29 c) 831.05 d) 1,163.47

2. a) 39.47% b) 50.75% c) 56.39% d) 66.54%

3. a) 18.78% b) 21.60% c) 33.80% d) 36.68%

4 & 5: Proper management of a firms working capital is vital and challenging due to the (uncertainty or certainty) and (synchronized timing or lack of synchronized timing) between a firms cash inflows and outflows

Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit. These terms will affect the cost of the asset for both the buyer and the seller. Consider the following case: Purple Turtle Group buys on terms of 3/10, net 30 from its principal supplier. If Purple Turtle receives an invoice for $856.75, then the true price of this invoice is The supplier is willing to extend credit that exhibits a nominal annual cost of Suppose Purple Turtle doesn't take the discount and instead chooses to pay its supplier five days late-so that on average, Purple Turtle will pay its supplier on the 35th day after the date of sale. As a result, Purple Turtle can decrease its actual nominal cost of trade credit by paying late. by and between Proper management of a firm's working capital is vital and challenging due to the a firm's cash inflows and outflows