Chapter 8 Homework Questions 1. What is the difference between financial needs and financing requirements? 2. Differentiate between internal and extemal financing Give several examples. 3. Discuss the concepts of business risk, financial risk, and instrument risk. 4. Identify the six C's of credit 5. How can govemment agencies help businesses? Learning Exercises: EXERCISE 1: CASH INFLOW FROM WORKING CAPITAL ACCOUNTS How much additional cash could a company obtain from its working capital accounts if it can improve its inventory turnover by 0.2 times and average collection period by 5 days? The company's inventories are $500,000, and trade receivables are $250,000. The company's reveme is estimated at $1.8 million and cost of sales at $900,000. EXERCISE 2: TYPES OF RISKS There are three types of risk-related financing options: business risk, financial risk, and instrument nak. Liat each of the following under the appropriate risk concept: Bands Leverage Insashency No debat Business variations Netgage Finance costs Unsecured loans Com Shares Candiacul sales contacts isleci bunesses Capital nature Industry eveningen incertainty EXERCISE 3: FINANCIAL NEEDS AND FINANCING REQUIREMENTS A company needs $1.2 million to invest in different types of assets and operating expenses to launch a new line of products. With the following information, make a list of the company's financial needs and financing requirements. Marketing cost SEIT ales Deprecat SOF Shushades 2000 Suppliers SOP ile car Working capital lix 0.00 Eiendo Reach and development Comment