答案和详解如下： 1.Compared to the prior period, a firm has greater days of receivables. The effect on the firm’s cash conversion cycle and operating cycle are most likely a(n):
| Cash conversion cycle
| Operating cycle
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A) Increase Decrease B) Decrease Increase C) Decrease Decrease D) Increase Increase The correct answer was D) Greater days of receivables will increase both the cash conversion cycle and operating cycle, other things equal.
2.Compared to the prior year, Chart Industries has reported that its operating cycle has remained relatively stable while its cash conversion cycle has decreased. The most likely explanation for this is that the firm:
A) is relying more on its suppliers for short-term liquidity. B) is paying its bills for raw materials more rapidly. C) has improved its inventory turnover. D) has relaxed its credit policies to increase sales. The correct answer was A) The cash conversion cycle is its operating cycle minus its average days payables outstanding. Therefore, the firm’s average days payables must have increased, a clear indication that the firm is relying more heavily on credit from its suppliers. Improved inventory turnover would tend to increase both the operating and cash conversion cycles. Relaxed credit policies would tend to increase the firm’s operating cycle as receivables turnover would tend to decrease.
3.An analyst who is evaluating a firm’s working capital management would be least likely to be concerned if the firm’s:
A) trade payables turnover is lower than that of its peers. B) total asset turnover is lower than its industry average. C) days of inventory on hand is higher than the industry average. D) operating cycle is shorter than that of its peers. The correct answer was D) A shorter operating cycle will lead to a shorter cash conversion cycle, other things equal, which is an indication of better working capital management. While credit policies that are too strict could also reduce the operating cycle, this is less of a concern than the other choices. Lower trade payables turnover and higher days inventory on hand, compared to peer company averages, will both tend to lengthen the cash conversion cycle, an indication of poorer working capital management. Good working capital management would tend to increase a firm’s total asset turnover since a given amount of sales can be supported with less working capital (less current assets). | 
发表于 2008-4-9 10:02
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