working capital
Across
- 2. The time it takes for a retailer's cash that was used to purchase inventory to return to cash is the operating ________.
- 3. The most liquid asset.
- 6. Credit terms such as 1/10, net 30 will be described as a cash discount or an ________ payment discount.
- 10. The term used to describe an inventory item that can no longer be sold due to changes in technology and/or demand.
- 11. Temporary ________________ will be listed after cash on a company's balance sheet.
- 13. Current assets minus current liabilities equals working ______________.
- 14. The approximate number of days' sales in inventory indicated by an inventory turnover ratio of 9 is ________ days.
- 16. The amount of a decrease in a company's accounts receivable will appear on the statement of cash flows as a ____________ amount.
- 19. This current asset is not included when calculating the quick ratio
- 21. When the change in inventory appears in parentheses on the statement of cash flows, the inventory must have ________________ during the accounting year.
- 22. The cost of goods sold divided by the average inventory is the inventory ___________ ratio.
- 24. The current ratio is calculated by ______________ the amount of current assets by the amount of current liabilities.
Down
- 1. Dividing 360 by the inventory turnover ratio is the ______ sales in inventory.
- 2. Another description for the days' sales in accounts receivable is the average ____________ period.
- 4. Prepaid expenses are reported on the financial statements as a current __________ until they are used up.
- 5. A company that purchases other companies’ accounts receivable.
- 7. The inventory turnover calculation is most accurate when the ______ of goods sold is divided by the average inventory.
- 8. Deferred revenues are reported on the balance sheet as a current ___________ until they are earned.
- 9. Because of seasonal fluctuations, it is best to use the _____________ amounts of the receivables throughout the year when calculating the receivables turnover ratio.
- 12. The operating cash flow ratio is the net cash provided by operating activities divided by the average amount of current ______________.
- 15. In industries where the operating cycle is less than 365 days, this period of time is used to determine if an asset is a current asset.
- 17. The amount of a company's ___________ liabilities are used in the calculation of the current ratio.
- 18. From the time a company sells goods on credit until the money is received, the company is an __________ creditor.
- 20. Changes in the amounts of most of the working capital accounts are usually shown in the ______________ activities section of the cash flow statement.
- 23. A turnover ________ is likely to involve an amount from the income statement and from the balance sheet.