1 Short-term inancial polies that are tlexible with regard to current assets inc

Question

1 Short-term inancial polies that are tlexible with regard to current assets include such actions as: telect here 2 Short-term financial policies that are restrictive with regard to current assets include such actions as: relect here 3 current asset holdings are highest with short-term tinancial policy and lowest with a -P policy 4 The optimal short-term financial policy: 5 The costs incurred because firm's ive tmant in currant ats is low are -costs 6 For U.S. manufacturing, mining. and trade corporations, current assets are Forantiy about currently about percent of total asset here

Explanation / Answer

1.
a) Keep large cash & marketable securities b) Large inventory investments c) High accounts receivable due to liberal credit terms

2.
a) Keep low cash & marketable securities b) Small inventory investments c) Minimize accounts receivable by allowing few or no sales in credit

3.
flexible,restrictive

4.
Optimal policy minimizes the cost of firm's investment for current assets.

5.
shortage costs

5.

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