1. Assume you are the financial officer of a major firm. The CEO of the firm has just stated that she wishes to reduce the firms investment in current assets since those assets provide little, if any, return to the firm. How would you respond to this statement.
2. A firm has days sales in inventory of 25 days, an average collection period of 35 days, and takes 92 days, on average, to pay its accounts payable. taken together, what do these three figures imply about the firms operations and its cash flows?