Blog

Chapter 3:  Ratio Analysis

Proper management of current assets and current liabilities can be the difference between a thriving, growing endeavor and a stagnant, cash-strapped money pit.  Choose all of the true statements below in regard to current asset and current liability management.

Inventory = 1,250COGS = 7,200A/R = 4,000Revenues = 8,000Purchases = 5,500A/P = 3,200​Refer to the information above.  What is the cash conversion cycle?  Use 365 as the number of days in a year.

When market interest rates rise, bond prices will:

The average time between a sale and collection of the receipt is known as:

Inventory = 1,250COGS = 7,200A/R = 4,000Revenues = 8,000Purchases = 5,500A/P = 3,200​Refer to the information above.  What is the inventory conversion period?  Use 365 as the number of days in a year.

________________ is the minimum amount of risk that must be borne by those investing in stocks due to factors that affect the entire market.

The ___________ the standard deviation, the ____________ the data points are spread out over a series of value. 

A stock with a positive beta will move in the _____________ direction of the market.  A stock with a beta greater than 1 will be _____________ sensitive to market movements.

Under which form of the Efficient Market Hypothesis would one argue that insider trading is a waste of time?