Soenen Inc

question 68

Multiple Choice

Soenen Inc.had the following data for 2008 The new CFO believes that the company could improve its working capital management sufficiently to bring its NWC and CCC up to the benchmark companies' level without affecting either sales or the costs of goods sold.Soenen finances its net working capital with a bank loan at an 8% annual interest rate, and it uses a 365-day year.If these changes had been made, by how much would the firm's pre-tax income have increased?

• A)1,901
• B)2,092
• C)2,301
• D)2,531
• E)2,784

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Definitions:

Take Action

The process of behaving or conducting oneself in a way that initiates change or produces results.

Results

The outcomes or outputs achieved from a specific process, activity, or investment, which are measured against predetermined objectives or goals.

Plan Obsessively

The approach of meticulously detailing every aspect of a project or venture to ensure its success.

Objective Thinking

A way of reasoning and making decisions based on facts and evidence, without influence from personal feelings or biases.