Current Asset Management
1. In the management of cash and marketable securities, why should the primary concern be for safety and liquidity rather than maximization of profit?
2. Explain the similarities and differences of lockbox systems and regional collection offices.
3. Why are Treasury bills a favorite place for financial managers to invest excess cash?
4. What the the 5 Cs of credit that are sometimes used by bankers and others to determine whether a potential loan will be repaid?
5. What does the EQQ formula tell us? What assumption is made about the usage rate for inventory?