6 Questions
What is the industry average for the credit period taken from suppliers in days?
47
What is the quick ratio for Topple Co in terms of liquid assets per $1 of current liabilities?
$0.42
What is the expected revenue generated by each $1 invested in working capital?
$6.30
What is the main cause of Topple Co's long working capital cycle?
Slow inventory turnover
What is the current ratio for Topple Co, and how does it compare to the industry average?
$1.10 of current assets per $1 of current liabilities; it does not compare favorably with the industry average of 1.43
What is the significance of Topple Co paying its suppliers more quickly than the industry norm?
It allows Topple Co to take advantage of settlement discounts offered by suppliers
Test your knowledge on cash operating cycles with this quiz! Learn about the significance of the length of cash operating cycles and how it can affect a company's liquidity. This quiz will cover the industry average, credit periods from suppliers, and the potential impact on the company's overdraft. Sharpen your understanding of cash management and take this quiz now!
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