Which one of the following statements regarding working capital management is not correct?

• A. Increasing costs associated with the manufacture and sale of products will not impact the short-term management of working capital
• B. Seasonal demand for me products can cause working capital problems that must De anticipated and managed
• C. The cash, inventory accounts payable and accounts receivable components of working capital are constantly changing during the operating cycle
• D. An attempt to minimize carrying costs and shortage costs associated with inventory levels is an objective of working capital management

A corporation has $80 million in current assets comprised of $30 million in inventory and $50 million in cash and marketable securities it has current liabilities of $50 million. If the corporation purchases an additional $10 million in inventory with trade credit this would

• A. not change its current ratio and decrease its quick ratio
• B. not change its current ratio and not change its quick ratio
• C. increase its current ratio and increase its quick ratio
• D. decrease its current ratio and decrease its quick ratio

Explain now QDD's share repurchase plan would affect each of the following measures EPS, the degree of operating leverage, and the interest coverage ratio No calculations required Essay Quality Digital Design (QDD) Inc is a public-traded technology company Selected financial data of QDD for the prior year are as follows

QDD's stock was trading at $160 per share at the beginning of the yea: and at $176 per share by the end of the year. The company paid dividends of S5 per share. The company "s stock had a beta of 1 4 The stock market provided a total return of 12% last year, well above the 3% risk free rate of return QDD is considering the issuance of $200 million of bonds to fund the repurchase of $200 million of its stock.
QDD is evaluating the bond, including its term structure, maturity, and whether it should be callable obtaining the lowest coupon interest is an important objective of QDD. The CFO has estimated that sales for the current year would remain the same as last year and the new bond would add S12 million in annual interest payments

A company with idle capacity has been contacted by a new customer to supply 10,000 units of its products for a special batch order its costs are as follows.

The company's normal soling price is SI00 per unit but the customer is wiling to pay only S70 pet unit Should the company accept the special order''

• A. No, because the special order will reduce operating profit by S50 000
• B. Yes, because the special order will increase operating profit by S100 000
• C. Yes, because the special order will increase operating profit by S250 000
• D. No, because the special order will reduce operating profit by $250 000