RS Stores Identifies That an Order Needs to Placed for Refrigerators.The

question 107

Multiple Choice

RS Stores identifies that an order needs to placed for refrigerators.The company places an order after three weeks and receives the order after two weeks of placing the order.What is the lead time in this case?

• A)one week
• B)two weeks
• C)three weeks
• D)four weeks
• E)five weeks

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Definitions:

Free Cash Flow

A measure of financial performance calculated as operating cash flow minus capital expenditures, representing the cash that a company is able to generate after spending the money required to maintain or expand its asset base.

Capital Expenditures

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment.

Cash Dividends

Payments made by a corporation to its shareholders, representing a distribution of profits.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in balance sheet accounts to calculate operating cash flow.