Which of the following items would be classified as a source of cash on a company's statement of cash flow?
I. Selling, general, and administrative expense
II. Increase in accounts payable
III. Increase in inventory
IV.
Depreciation expense

• A.I, II, and IV only
• B.I and III only
• C.III only
• D.II and IV only

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Company RST is a seasonal retailer who has just completed its holiday season and is temporarily flush with cash. The treasurer has identified approximately $15 million of excess balances and is trying to determine what to do with the surplus cash. Cash forecasts show that the funds will be needed in approximately 30 days to replenish inventory. Which of the following plans should the treasurer implement immediately?

• A.Prepay a $15 million, 5% loan maturing in 1 year.
• B.Purchase low-risk, short-term investments yielding 2%.
• C.Buy a long-term, highly rated investment paying 2.10%.
• D.Leave the funds in RST's bank account earning an ECR of 1%.

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Which of the following concentration transfer alternatives provide the fastest availability of funds?

• A.Value-added banks
• B.Wire transfers
• C.Point-of-sale terminal transfers
• D.Electronic depository transfers

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Which of the following objectives of treasury management refers to a company's ability to meet current and future financial obligations in a timely, efficient, and cost-effective manner?

• A.Optimizing cash resources
• B.Maintaining liquidity
• C.Establishing access to short-term financing
• D.Managing risk

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In which of the following instances does the clientele effect come into play?

• A.When a company announces its earnings forecast
• B.When a company declares a dividend
• C.When a company increases its sales
• D.When a company submits its 10-Q to the SEC

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