-How Many Orders Will Be Made Per Year?
A) 8

question 79

Multiple Choice

$\begin{array}{ll}\text { Warehouse space } & \$ 3.00 / \text { unit } \\\text { Material handling expense } & \$ 2.00 / \text { unit } \\\text { Insurance premium } & \$ 1.00 / \text { unit } \\\text { Total ordering cost } & \$ 150.00 / \text { per order }\end{array}$
-How many orders will be made per year?

• A) 8.4 orders per year
• B) 12 orders per year
• C) 91 orders per year
• D) 4.27 orders per year

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Definitions:

Net Operating Working Capital

The difference between a company's current assets and its current liabilities, excluding short-term debt. It is indicative of a company's operational liquidity.

Balance Sheet

A report that provides an overview of a business's financial position, including what it owns (assets), owes (liabilities), and the value that remains for the shareholders (equity) at a particular moment.

Current Liabilities

Current liabilities are a company's debts or obligations that are due within one year.

Free Cash Flow

A financial metric that represents the amount of cash generated by a company after accounting for capital expenditures, essential for evaluating its liquidity, flexibility, and overall financial health.