FIN 300 Exam 1 Chapters 1,2,3 & 5

Articles of Incorporation

a written legal document that defines ownership and operating procedures and conditions for the business

Mashburn Roasters has sales of $807,200, total assets of $768,100, and a net profit margin of 6.68 percent. The firm has a total debt ratio of 54 percent. What is the return on equity? a. 13.09% b. 12.04% c. 11.03% d. 8.56% e. 15.26%

e. 15.26%

Liquidity

the ease with which an asset can be converted into cash

Capital Budgeting

the process of planning and managing a firm's long-term investments

Which one of the following represents the most liquid asset? a. $500 account receivable that is discounted and collected for $480 today b. $500 worth of inventory that is sold today on credit for $515 c. $500 worth of inventory that is sold today for $500 in cash d. $500 worth of inventory that is discounted and sold today for $485 in cash. e. $500 of accounts receivable that will be collected in full next week

c. $500 worth of inventory that is sold today for $500 in cash

Quick Ratio (Short-term Liquidity)

(Current Assets - Inventory) / Current Liabilities

Total Debt Ratio (Long-term Solvency)

(Total Assets - Total Equity) / Total Assets

Equity Multiplier Ratio (Long-term Solvency)

(total assets / total equity) = 1 + (debt / total equity)

Corporate Tax Rate

21% flat rate

Sole Proprietorship

A business owned by one person

Cash Coverage (Long-term Solvency)

EBIT + depreciation / interest expense

Marginal Rate of Tax

Tax paid on extra income earned

Tax Code

The official body of tax laws and regulations.

Time Value of Money (TVM)

a dollar in hand today is worth more than a dollar promised at any point in the future - earn interest if you deposit, invest, or lend to others - how much interest you earn depends on interest rates - you can apply this concept to various financial fields

Which one of the following is a correct formula for computing the return on equity? a. Net profit margin × ROA b. ROA × Equity multiplier c. Net profit margin × Total asset turnover × Debt-equity ratio d. Net income/Total assets e. Debt-equity ratio × ROA

b. ROA × Equity multiplier

Which of the following parties are not considered stakeholders of a firm? a. Employees b. Government c. Competitors d. Customers e. Suppliers

c. Competitors

Net Working Capital

current assets - current liabilities

Park Resources has sales of $687,400, cost of goods sold of $454,200, and a net profit margin of 5.5 percent. The balance sheet shows common stock of $324,000 with a par value of $5 a share, and retained earnings of $689,500. What is the price-sales ratio if the market price is $43.20 per share? a. 4.28 b. 12.74 c. 6.12 d. 4.07 e. 14.51

d. 4.07

Which of the following actions would be considered an agency problem? a. An owner of a sole proprietorship takes company office supplies for personal use b. Both partners in a general partnership close the office early one day to go skiing c. A manager in a corporation buys shares of the company's stock when the price falls d. A manager in a corporation makes online personal travel arrangements during work hours e. A shareholder in a corporation sells shares of the company's stock when the price rises

d. A manager in a corporation makes online personal travel arrangements during work hours

An increase in which one of the following will increase a firm's quick ratio without affecting its cash ratio? a. Accounts payable b. Cash c. Inventory d. Accounts receivable e. Fixed assets

d. Accounts receivable

Which of the following actions could cause a company's change in net working capital to be negative for a given year? a. Increase the dividends paid to stockholders b. Pay off long-term debt before the due date c. Purchase additional inventory with cash d. Borrow money from the bank using a note payable in nine months e. Use long-term debt to buy a building

d. Borrow money from the bank using a note payable in nine months

During the past two years, both the cost per unit and the selling price per unit remained constant at The Floor Store. The firm was able to increase the quantity of goods it sells while holding the amount of inventory on hand at a constant level. This accomplishment will be reflected in the firm's financial ratios in which one of the following ways? a. Decrease in the inventory turnover rate b. Decrease in the net working capital turnover rate c. Increase in the fixed asset turnover rate d. Decrease in the days' sales in inventory e. Decrease in the total asset turnover rate

d. Decrease in the days' sales in inventory

Which one of the following questions involves a capital structure decision? a. Which one of two project proposals should the firm implement? b. How should the firm allocate its limited available funds among acceptable projects? c. How much funding should be allocated to financing customer purchases of a new product? d. How much debt should the firm incur to fund a project e. How much inventory will be needed to support a project?

d. How much debt should the firm incur to fund a project

Working Capital Management consists of

liquidity management account receivable management inventory management accounts payable management short tem debt management

Primary Market

market for selling financial assets that can only be redeemed by the original holder

Financial managers focus on ___________________ of their firms because it can reflect the cash flows that would occur today.

market value

Tobin's Q Ratio (Market Value)

market value of assets / replacement cost of assets

Market to Book Ratio (Market Value)

market value per share / book value per share

PE Ratio (Market Value)

market value per share / book value per share

Turnover

measures asset utilization or how efficiently or intensively a firm utilizes its assets to generate sales

Profitability Ratios

measures how effciently a firm uses its assets and manages operations

Profit Margin Ratio (Profitability)

net income / net sales

Is the statement of cash flows considered to be more informative than net income?

yes

Which one of the following is a disadvantage of the corporate form of business? a. Shareholders may experience limited liability. b. Distributed profits may experience double taxation. c. Raising capital may be more difficult than for other forms of business. d. The firm may have unlimited life. e. The firm may issue additional shares of stock.

b. Distributed profits may experience double taxation.

Which one of the following statements concerning net working capital is correct? a. Net working capital increases when inventory is purchased with cash. b. Net working capital may be a negative value. c. Total assets must increase if net working capital increases. d. Net working capital excludes inventory. e. Net working capital is the amount of cash a firm currently has available for spending.

b. Net working capital may be a negative value.

Which one of the following is a primary market transaction? a. Sale of currently outstanding stock by a dealer to an individual investor b. Sale of a new share of stock from a corporation to an individual investor c. Transfer of stock ownership from one shareholder to another shareholder d. Gift of stock from one shareholder to a previous non-shareholder e. Repurchase of stock by a corporation from a shareholder

b. Sale of a new share of stock from a corporation to an individual investor

A firm owned by a single person who has unlimited liability for the firm's debt is called a: a. corporation. b. sole proprietorship. c. general partnership. d. limited partnership. e. limited liability company.

b. sole proprietorship.

Activities of a firm that require the spending of cash are known as: a. sources of cash. b. uses of cash. c. cash collections. d. cash receipts. e. cash on hand.

b. uses of cash.

Chief Operating Officer (COO)

the position responsible for overseeing the company's operations

Market Value

the price at which property would sell

Assuming a firm earns taxable income, an increase in ______ will cause the cash flow from assets to increase. a. depreciation expense b. net capital spending c. the change in net working capital d. income tax expense e. production costs

a. depreciation expense

Financial management functions on the behalf of who

shareholders

Capital Structure

the mixture of debt and equity maintained by a firm

Eduardo sold 500 shares of Northcutt Corporation stock on the New York Stock Exchange. This transaction: a. took place in the primary market. b. occurred in a dealer market. c. occurred in the secondary market. d. involved a proxy. e. was a private placement.

c. occurred in the secondary market.

Ratios that measure a firm's liquidity are known as ______ ratios. a. asset management b. long-term solvency c. short-term solvency d. profitability e. book value

c. short-term solvency

Recievables Ratio (Turnover)

sales / accounts receivables

Total Asset Turnover Ratio

sales / total assets

Board of Directors (BOD)

a group of individuals, elected to represent shareholders in order to establish policies for corporate management and oversight, making decisions on major company issues. (dividends, long-term investments, mergers & acquisitions)

A firm reported sales of $350,000, interest expense of $2,330, costs of $140,000, and depreciation expense of $17,800. The firm's average income tax rate is 21 percent. How much operating cash flow did the firm generate? a. $170,127 b. $148,530 c. $164,000 d. $165,794 e. $162,236

a. $170,127

Herrera Corporation has total sales of $3,110,400 and costs of $2,776,000. Depreciation is $258,000 and the tax rate is 21 percent. The firm is all-equity financed. What is the operating cash flow? a. $318,356 b. $522,176 c. $264,176 d. $60,356 e. $334,400

a. $318,356

Barnett Saddlery had beginning net fixed assets of $218,470 and ending net fixed assets of $209,411. During the year, assets with a book value of $6,943 were sold. Depreciation for the year was $42,822. What is the amount of net capital spending? a. $33,763 b. $40,706 c. $58,218 d. $65,161 e. $67,408

a. $33,763

Arora Jewelry owns the building in which it conducts business. The building cost $647,000 to purchase and is currently appraised at $819,000. The fixtures inside the building originally cost $148,000 and are currently valued at $65,000. The inventory has a book value of $319,000 and a market value equal to 1.1 times the book value. The shop expects to collect 96 percent of its $21,700 in accounts receivable. The shop has $26,800 in cash and total debt of $414,700. What is the market value of its equity? a. $867,832 b. $900,166 c. $695,832 d. $775,632 e. $1,190,332

a. $867,832

Fierro Fitness had sales of $3,340, net income of $274, net fixed assets of $2,600, and current assets of $920. The firm has $430 in inventory. When evaluating last year's performance, what is the common-size statement value of inventory? a. 12.22% b. 44.16% c. 16.54% d. 13.36% e. 46.74%

a. 12.22%

Steele Video has sales of $96,400, costs of $53,800, interest paid of $2,800, and depreciation of $7,100. The tax rate is 21 percent. What is the value of the cash coverage ratio? a. 15.21 b. 12.14 c. 17.27 d. 23.41 e. 12.68

a. 15.21

Anytime Coffee has 160,000 shares of stock outstanding, sales of $1.94 million, net income of $126,400, a price-earnings ratio of 21.3, and a book value per share of $7.92. What is the market-to-book ratio? a. 2.12 b. 1.84 c. 1.39 d. 2.45 e. 2.69

a. 2.12

Which one of the following questions is least likely to be addressed by financial managers? a. In which region of the country should a new product be launched? b. Should customers be given 30 or 45 days to pay for their credit purchases? c. Should the firm pay off its debt early? d. Should the firm acquire new equipment? e. How much cash should the firm keep on hand?

a. In which region of the country should a new product be launched?

Last year, Yang Software had $15,900 of sales, $500 of net new equity, dividend payments of $75, addition to retained earnings of $418, depreciation of $680, and $511 of interest expense. What are the earnings before interest and taxes at a tax rate of 21 percent? a. $589.46 b. $1,135.05 c. $1,331.54 d. $1,560.85 e. $949.46

b. $1,135.05

Shen & Sanchez Engineering is an all-equity firm that has net income of $96,200, depreciation expense of $6,300, and an increase in net working capital of $2,800. What is the amount of the net cash from operating activity? a. $91,300 b. $99,700 c. $93,400 d. $105,300 e. $113,700

b. $99,700

Based on the tax table below, what is the average tax rate for a sole proprietor with taxable income of $155,000? Ignore any standard or itemized deductions. Taxable Income Tax Rate $ 0 - 9,875 10% 9,875 - 40,125 12 40,125 - 85,525 22 85,525 - 163,300 24 a. 10.76% b. 20.18% c. 24.00% d. 16.26% e. 21.00%

b. 20.18%

Hello Robin! has accounts receivable of $4,511, inventory of $1,810, sales of $138,609, and cost of goods sold of $64,003. How many days does it take the firm to sell its inventory and collect the payment on the sale assuming that all sales are on credit? a. 11.88 days b. 22.20 days c. 16.23 days d. 14.50 days e. 18.67 days

b. 22.20 days

Which one of the following is a working capital management decision? a. What equipment will be required to complete a project? b. Should the firm require immediate payment from customers or offer credit terms? c. What amount of long-term debt is required to complete a project? d. What percentage of the firm's equity should the firm issue to fund an acquisition? e. Which one of several acceptable projects should be implemented?

b. Should the firm require immediate payment from customers or offer credit terms?

At the beginning of the year, the long-term debt of a firm was $72,918 and total debt was $138,407. At the end of the year, long-term debt was $68,219 and total debt was $145,838. The interest paid was $6,430. What is the amount of the cash flow to creditors? a. $1,731 b. −$1,001 c. $11,129 d. $13,861 e. $19,172

c. $11,129

Shen Systems purchased equipment four years ago at a cost of $218,000. The equipment is valued at $97,400 on today's balance sheet but could actually be sold for $92,900. This is the only fixed asset the firm owns. Net working capital is $41,300 and long-term debt is $102,800. What is the book value of shareholders' equity? a. $31,400 b. $47,700 c. $35,900 d. $249,400 e. $253,900

c. $35,900

Which form of business would be the best choice if it were necessary to raise large amounts of capital? a. Sole proprietorship b. Limited liability company c. Corporation d. General partnership e. Limited partnership

c. Corporation

The growth of both sole proprietorships and partnerships is frequently limited by the firm's: a. double taxation. b. bylaws. c. inability to raise cash. d. limited liability. e. agency problems.

c. inability to raise cash.

The cash coverage ratio directly measures the ability of a company to meet its obligation to pay: a. an invoice to a supplier. b. wages to an employee. c. interest to a lender. d. principal to a lender. e. a dividend to a shareholder.

c. interest to a lender.

A partner in a firm knows that the maximum financial loss he or she will experience is the amount he or she invested in the firm. The partner is called a ______ partner. a. general b. sole c. limited d. corporate e. zero

c. limited

Form 10-K/Q

comprehensive picture of a coporation's financial conditions during a specified period - business summary - risk disclosures - management and discussion analysis - financial statements

Which one of the following actions by a financial manager is most apt to create an agency problem? a. Refusing to borrow money when doing so will create losses for the firm b. Refusing to lower selling prices if doing so will reduce the net profits c. Refusing to expand the company if doing so will lower the value of the equity d. Agreeing to pay bonuses based on the market value of the company's stock rather than on its level of sales e. Increasing current profits when doing so lowers the value of the company's equity

e. Increasing current profits when doing so lowers the value of the company's equity

During the year, Manbeck Gardens decreased its accounts receivable by $160, increased its inventory by $115, and decreased its accounts payable by $70. How did these three accounts affect the sources or uses of cash by the firm? a. Net source of cash of $120 b. Net source of cash of $205 c. Net source of cash of $45 d. Net use of cash of $115 e. Net use of cash of $25

e. Net use of cash of $25

The Natural Pet had sales of $763,500 in 2020, and $864,200 in 2021. The firm's current accounts remained constant. Given this information, which one of the following statements must be true? a. The total asset turnover rate increased. b. The days' sales in receivables increased. c. The receivables turnover rate decreased. d. The fixed asset turnover decreased. e. The net working capital turnover rate increased.

e. The net working capital turnover rate increased.

Limited partners benefit from which of the primary advantages? a. They have the opportunity to earn tax-free income. b. Their responsibility for the firm's debts is prorated based on their percentage of ownership. c. They do not face any potential financial losses. d. They have control over the administrative affairs of the partnership. e. Their maximum loss cannot exceed the amount of their capital investment.

e. Their maximum loss cannot exceed the amount of their capital investment.

Future Value

the amount your original deposit will be worth in the future based on earning a specific interest rate over a specific period of time

Corporate Bylaws

the basic rules governing how a corporation is organized and how it conducts its business

Book Value

the difference between the cost of a depreciable asset and its related accumulated depreciation

Federal Funds Rate

the interest rate at which banks make overnight loans to one another - benchmark rate (guideline)

Secondary Market

the market in which previously issued securities are traded among investors

Statement of Cash Flows

A financial statement that provides financial information about the cash receipts and cash payments of a business for a specific period of time.

Balance Sheet

A financial statement that reports assets, liabilities, and owner's equity on a specific date.

Limited Partnership (LP)

A partnership consisting of one or more general partners and one or more limited partners.

Financial Management responsibilities

Acts in the shareholder's interest and maximize the current value per share of existing stock An inexhaustive list of examples • Maximize sales and profits • Minimize expenses • Maintain stable earnings growth • Become more competitive than industry peers • Avert financial distress and bankruptcy

Cash Ratio (Short-term Liquidity)

Cash / Current Liabilities

Future Value Formula

FV = PV(1+r)^n PV = principal or present value r = interest rate t = number of compounding periods

Major SEC filing documents

Form S-1 Form 10-K Form 10-Q Form S-K Proxy Statement

Workig Capital Management Questions

How much cash and inventory should a firm keep on hand? How will a firm acquire short-term financing, such as purchasing on credit from suppliers or simply paying cash to them?

Present Value Formula

PV = FV/(1+r)^n FV = future value r = interest rate n = number of compounding periods

Debt to Equity Ratio (Long-term Solvency)

Total Debt / Total Equity

The cash flow that results from a company's ongoing, normal business activities is called: a. operating cash flow. b. capital spending. c. net working capital. d. cash flow from assets. e. cash flow to creditor.

a. operating cash flow.

Short-term Solvency and Liquidity

ability to pay bills in the short run - focus on current assets and liabilities

Ratio Analysis

alternative way to compare and investigate firms and relationships between pieces of information

Interest Rate

amount a lender charges to a borrower

Lewis & Price Corporation paid $700 in dividends and $320 in interest this past year. Common stock remained constant at $6,800 and retained earnings decreased by $180. What is the net income for the year? a. $180 b. $520 c. $1,020 d. $880 e. $1,200

b. $520

Which one of the following is a source of cash? a. Repurchase of common stock b. Acquisition of debt c. Purchase of inventory d. Payment to a supplier e. Granting credit to a customer

b. Acquisition of debt

Which one of the following is a current liability? a. A loan payable to the bank in 4 years b. An invoice payable to a supplier in 45 days c. An amount due from a customer in 90 days d. A note payable to a lender in 18 months e. An amount due from a customer, which is already past due

b. An invoice payable to a supplier in 45 days

Inventory Turnover Ratio

cost of goods sold / inventory

Jacob's Escape has accounts payable of $2,214, inventory of $7,950, cash of $1,263, fixed assets of $8,400, accounts receivable of $3,907, and long-term debt of $4,200. What is the value of the net working capital to total assets ratio? a. .31 b. .42 c. .47 d. .51 e. .56

d. .51

Which one of the following describes a noncash item? a. Fixed expenses b. Inventory items purchased using credit c. Ownership of intangible assets such as patents d. Expenses that do not consume cash e. Sales that are made using store credit

d. Expenses that do not consume cash

The book value of a firm is: a. equivalent to the firm's market value minus its liabilities. b. a financial, rather than an accounting, valuation. c. generally greater than the market value when fixed assets are included. d. based on historical transactions. e. adjusted to the market value whenever the market value exceeds the stated book value.

d. based on historical transactions.

Determining the number of shares of stock to issue is an example of a ______ decision. a. capital rationing b. net working capital c. capital budgeting d. capital allocation e. capital structure

e. capital structure

Corporate bylaws: a. must be amended should a firm decide to increase the number of shares authorized. b. cannot be amended once adopted. c. define the name by which the firm will operate. d. describe the intended life and purpose of the organization. e. determine how a corporation regulates itself.

e. determine how a corporation regulates itself.

When evaluating the timing of a project's projected cash flows, a financial manager is analyzing: a. the amount of each expected cash flow. b. only the start-up costs that are expected to require cash resources. c. only the date of the final cash flow related to the project. d. the amount by which cash receipts are expected to exceed cash outflows. e. when each cash flow is expected to occur.

e. when each cash flow is expected to occur.

The Dupont Identity

expresses return on equity as the product of profit margin, asset turnover, and a measure of leverage

Leverage and Long-term Solvency

firm's long-term ability to meet its obligations or financial leverage

EPS Ratio (Market Value)

net income / shares outstanding

Return on Equity Ratio (Profitability)

net income / total equity

Net Working Capital to Total Assets Ratio (Short-term Liquidity)

net working capital / total assets

General Partnership

partnership in which partners share equally in both responsibility and liability

NWC Ratio (Turnover)

sales / nwc

Equity Issuance

when a firm sells common stock to the public

Cash flow from assets (CFFA)

Cash Flow to Creditors + Cash Flow to Stockholders OR Operating Cash Flow - Net Capital Spending - Changes in NWC

Chief Executive Officer (CEO)

Corporate officer who has overall responsibility for managing the business and delegates responsibilities to other corporate officers.

Simple Interest

Interest earned only on the original principal amount invested not the earned interest

Corporate finance generally asks THREE main questions:

What long-term investments should a firm take on? Where should a firm obtain its long-term funding to finance its investment projects? How will a firm manager perform routine financial activities such as collecting from customers and paying suppliers?

Debt Issuance

When a company borrows cash from lenders such as bondholders. This activity appears as an inflow (a positive number) bc the company receives cash today that will be paid back later.

The balance sheet of Perez Printing shows $680 in inventory, $2,140 in fixed assets, $210 in accounts receivables, $250 in accounts payable, and $80 in cash. How much net working capital does the company have? a. $970 b. $720 c. $640 d. $3,110 e. $2,860

b. $720

You recently purchased a restaurant that had equal market and book values. The purchase included the building, fixtures, and inventory. Which one of the following would be most likely to cause the market value of the restaurant to fall below its book value? a. A sudden and unexpected increase in inflation b. The replacement of old menu items with more desirable products c. A pandemic that required restaurants to limit the number customers allowed inside d. Construction of new sidewalks and street lighting e. Addition of a movie theater and music venues nearby

c. A pandemic that required restaurants to limit the number customers allowed inside

Which one of the following statements is correct? a. Book values should always be given precedence over market values. b. Financial statements are rarely used as the basis for performance evaluations. c. Historical information is useful when projecting a company's future performance. d. Potential lenders place little value on financial statement information. e. Reviewing financial information over time has very limited value.

c. Historical information is useful when projecting a company's future performance.

Current Ratio (Short-term Liquidity)

current assets / current liabilities

Agency problems are most likely to be associated with: a. sole proprietorships. b. general partnerships. c. limited partnerships. d. corporations. e. limited liability companies.

d. corporations.

Financial managers should primarily focus on the interests of: a. themselves. b. the vice president of finance. c. their immediate supervisor. d. shareholders. e. the board of directors.

d. shareholders.

Nielsen Paint had interest expense of $38,400, depreciation of $28,100, and taxes of $19,600 for the year. At the start of the year, the firm had total assets of $879,400 and current assets of $289,600. By year's end total assets had increased to $911,900 while current assets decreased to $279,300. What is the amount of the cash flow from investment activity for the year? a. −$51,150 b. $21,850 c. $29,300 d. −$70,900 w. −$89,400

d. −$70,900

Form 8-K

discussion of major corporate events - appointment or departure of key personal - bankruptcy - mergers and acquisitions - material weaknesses

All else constant, if a firm decreases its operating costs, which one of the following will also decrease? a. Return on equity b. Return on assets c. Net profit margin d. Total asset turnover e. Price-earnings ratio

e. Price-earnings ratio

Which of the following actions would be most likely to decrease agency costs for the firm? a. Increase employees' salaries to exceed the salaries paid by competitors b. Pay all employees based on the amount of revenue generated by the firm c. Prohibit employees from becoming shareholders of the firm d. Pay bonuses to employees only if profits increase from one year to the next e. Reward high performing employees with shares of stock

e. Reward high performing employees with shares of stock

Agency Problem

financial managers seek their personal benefits rather than fulfill their duty of maximizing shareholders' value

Market Value Ratios

give an idea of what investors think about the firm and its future prospects

Compound Interest

interest earned on both the principal amount and any interest already earned interest earned is reinvested

Securities and Exchange Commission (SEC)

monitors the stock market and enforces laws regulating the sale of stocks and bonds

Return on Assets Ratio (Profitability)

net income / total assets

Return on Equity can be deconstructed into

operational efficiency (controlling costs) asset use efficiency (managing productive resources) leverage (use of debt financing)

Equity Issuance reasons

pay off existing high cost debt fund operations buy new buildings or land for business purposes increase working capital pitch for mergers and acquistions

Form S-1

registration statement filed prior to the sale of new securities to the public includes - company management - business operations - financial health - risk factors - operational results

Agency Relationship

relationship between stockholders and management

Average Tax Rate (ATR)

the amount of total taxes paid divided by income

Present Value (PV)

the current value of future cash flows discounted at the appropriate discount rate

Cash Flow

the difference between cash coming in and cash going out of a business

Working capital

the difference between current assets and current liabilities

Corporation

A business owned by stockholders who share in its profits but are not personally responsible for its debts

Proxy Statement

A document containing information about important matters at an incoming shareholder meeting - shareholder proposal - executive and directors' compensations - nominated board members - voting procedures - perks used by executives

Income Statement

A financial statement showing the revenue and expenses for a fiscal period.

The Scene Shop had operating cash flow of $48,450. Depreciation was $6,700 and interest paid was $2,480. A net total of $2,620 was paid on long-term debt. The firm spent $24,000 on fixed assets and decreased net working capital by $1,330. What was the amount of the cash flow to stockholders? a. $5,100 b. $7,830 c. $18,020 d. $19,998 e. $20,680

e. $20,680

Working Capital

A firm is responsible for managing its working capitals to ensure that it has sufficient resources to continue its operations and circumvent costly interruptions.

Chief Financial Officer (CFO)

Corporate officer who is responsible for all of the accounting and finance issues of the company.