Use the following firm working capital cycle information for questions
$\begin{array}{ll}
\text { Days accruals}&10 \
\text {Days cash }& 7\
\text {Days inventory }& 33\
\text {Days accounts payables }& 21\
\text {Days accounts receivables }&35 \
\
\text { Average Daily COGS }&\$15
\end{array}$

-A loan where the entire principal is due at maturity is called a:
A) installment loan.
B) sinking fund loan.
C) mezzanine loan.
D) bullet loan.
E) highly leverage transaction loan.

Question

Use the following firm working capital cycle information for questions 
 $\begin{array}{ll}
\text { Days accruals}&10 \
\text {Days cash }& 7\
\text {Days inventory }& 33\
\text {Days accounts payables }& 21\
\text {Days accounts receivables }&35 \
\
\text { Average Daily COGS }&\$15
\end{array}$

-A loan where the entire principal is due at maturity is called a:
A) installment loan.
B) sinking fund loan.
C) mezzanine loan.
D) bullet loan.
E) highly leverage transaction loan.

Quizplus · Accepted Answer

A loan where the entire principal amount is due at maturity is known as a bullet loan. This type of loan involves paying interest over the term of the loan and then repaying the principal in a lump sum at the end.

Use the Following Firm Working Capital Cycle Information for Questions