1. In the absence of safety stock, the optimal inventory policy can be identified by:
the minimum carrying costs.
the minimum ordering costs.
carrying costs equaling ordering costs.
the maximum inventory turnover.
2. An organization has cash flow from operations = +$5,000 while they have cash flow from investing = +$3,000 and cash flow from financing = +$10,000. What do we know about this organization?
cash decreased.
they financed losses by selling assets.
they borrowed or issued equity.
they repaid debt.