Asked by thomas suggs on May 01, 2024
Verified
McCaw Zill Co., a wholesaler of college textbooks, is concerned about your college bookstore having sufficient operating cash flow to meet its credit obligations in a timely fashion. McCaw is concerned about the bookstore's _________________.
A) Capacity.
B) Character.
C) Capital.
D) Collateral.
E) economic condition
Operating Cash Flow
Cash generated from a firm’s normal business activities.
Credit Obligations
Financial responsibilities, including loans and debt, that must be repaid to creditors.
Timely Fashion
Completing tasks or fulfilling obligations within the expected or agreed upon time frame.
- Comprehend the impact of a firm's operating cash flow on its creditworthiness.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
A
Explanation :
Capacity refers to the borrower's ability to generate enough cash flow to meet credit obligations, which is McCaw Zill Co.'s concern.
Learning Objectives
- Comprehend the impact of a firm's operating cash flow on its creditworthiness.