Question 5 The concept of a self-liquidating asset implies that a. The working capital associated with a product will be liquidated within a one-year period. b. All the product will be sold, receivables collected, and bills paid over the time period specified c. Assets associated with the production of a product will be liquidated over the depreciable life of the assets. d. Self-liquidating assets will be financed by long-term sources of capital. Question 6 Timbergen Cans expects sales next year to be $50,000,000. Inventory and accounts receivable combined) will increase $8,000,000 to accommodate this sales level. The company has a profit margin of 6 percent. Its dividend payout is 30 percent of profit. How much external financing will the firm have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing a. No external financing will be needed. b. Less than $1,000,000 of external financing is needed c Between $1,000,000 and $5,000,000 of external financing is needed d. More than $5,000,000 of external financing is needed Question 7 Which of the following is generally considered to be the least liquid of current assets? a. Accounts Receivable b. Inventory C. Marketable Securities d. Cash Equivalents Question 8 Waldron Inc. is considering selling to a group of new customers that will bring in credit sales of $24,000 with a return on sales of s4. The only new investment will be in accounts receivable. Waldron has a turnover ratio of 6 to 1 between sales and accounts receivable. What is Waldron Incs expected return on investment? a 30% 0.25% 6.5% 0.0.8%