b. Swim Suits ' current asset financing policy is relatively aggressive; that is, the company finances some of its permanent assets with shortterm discretionary debt.
c. Swim Suits follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital.
d. Without income statement data, we cannot determine the aggressiveness or conservatism of the company ' s current asset financing policy.
e. Without cash flow data, we cannot determine the aggressiveness or conservatism of the company ' s current asset financing policy.
2. Which of the following statements is CORRECT?
a. A firm that makes 90 % of its sales on credit and 10 % for cash is growing at a constant rate of 10 % annually. Such a firm will be able to keep its accounts receivable at the current level, since the 10 % cash sales can be used to finance the 10 % growth rate.
b. In managing a firm ' s accounts receivable, it is possible to increase credit sales per day yet still keep accounts receivable fairly steady,