First-round financing occurs primarily during which of the following life cycle stages?
a. development stage
b. startup stage
c. survival stage
d. rapid-growth stage
A major difference between a venture’s operating cycle and the cash conversion cycle is the conversion cycle includes the time to:
a. buy materials
b. produce a finished good
c.collect sales made on credit
d. pay suppliers for purchases on credit
A firm has the following balance sheet information (assume all numbers are average like total assets is average total assets and so on) : total assets = $100,000; current assets = $30,000; inventories = $10,000; cash = $5,000; total liabilities = $30,000; current liabilities = $15,000; notes payable = $2,000. What are the firm’s quick and NWC-to-Total-Assets ratios?
a. 1.00 and .13
b. 1.33 and .13
c. 1.00 and .15
d. 1.33 and .15