Wgu C214 Final Exam Questions And Answers | Already Graded A | Western Governors University

What are inventory related costs? {Ans: Product costs, storage costs, and opportunity costs}Sustainable growth rate {Ans: How quickly a company can expand using only its own sources of funding. SGR = ROE * (1 - Dividend Payout Ratio)}What does the current ratio measure? {Ans: It is a measure of short term liquidity to pay short term obligations}What is the definition of a current asset and current liability? {Ans: A current asset is cash or any other asset that can be converted to cash within 12 months and a current liability is any liability that has to be paid within 12 months}What is an example of a timing difference? {Ans: Companies using different fiscal years}What is a differential cash flow? {Ans: It is the amount of net cash flow generated a new asset on a yearly basis}