Foundations of Financial Management Study Set 6
Quiz 6: Working Capital and the Financing Decision
Inventory Remains a Significant Percentage of Current Assets for Non-Financial
Inventory remains a significant percentage of current assets for non-financial Canadian corporations.
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Generally speaking, during the past two decades corporations were relying more and more on short-term borrowing to carry less liquid assets.
When using level production, inventory will peak in the month where unit sales trend above the production level.
Cash, accounts receivables, and inventory all move monthly in the same direction under level production.
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