Financial managers can employ the following strategies to free up cash for the business?

A: Proactively managing working capital.

B: Reducing collection float without losing market share.

C: Utilizing zero balance accounts.

D: Delaying payments to vendors.

E: All of the above.

The CFO of the company determines that New Asset Needs are $225,000, and that trade or Spontaneous Financing is likely to increase $55,000. His team has also developed a forecast for next year's income statement and balance sheet which indicates Retained Earnings will increase by $45,000. Based on these forecasts, the CFO determines the Additional Funding Needed (AFN) is ______?

A. $150,000 B. $89,000 C. $125,000 D. $25,000

ABC Company is evaluating a capital project that management forecasts will generate $37,000 each year over its six year life. If the required rate of return given the project risks is 10 percent, and the project up front costs are estimated at $200,000, should management go forward with the project? (HINT: calculate the PV of the 6 year cash flows and compare to project's cost.)

A. Management should approve project as NPV is positive.

B. Management should reject project as NPV is negative.

Badlands Outdoor Adventures Inc. has a proposed operating efficiency project (technology) that will NOT impact revenues, but will save operating expenses of $55,000 per year, excluding depreciation expenses. The total depreciable cost of the project is $420,000 and the company will depreciate the asset using 10 year straight line depreciation (equal amounts) to a zero basis. Assume that Badlands marginal tax rate is 44 percent, what is the annual incremental after tax cash flow of this project? (Hint: Because the depreciation expense is the same each year, the incremental operating cash flow will be the same for every year.)

A. $49,280 B. $13,000 C. $42,000 D. $51,580

A company's CFO, Treasurer and Controller are all key financial managers and are primarily responsible for which of the following activities and processes?

A. Evaluating the appropriate financial leverage to target in the company's (balance sheet) capital structure.

B. Preparing periodic financial statements for the board of directors and shareholders.

C. Evaluating the AFN for the upcoming year and developing a plan to raise any outside debt or equity capital.

D. Developing recommendations on the proposed capital projects, including forecasts of cash flows, NPVs and IRRs as appropriate.

E. Establishing policies and criteria for managing accounts receivable, inventories and net working capital

F. All of the above.