QUESTION 14 Relative to cash flows affecting net working capital, all of the following are true EXCEPT ... cash outlays for current liabilities are relatively predictable. cash inflows are generally...

QUESTION 14

Relative to cash flows affecting net working capital, all of the following are true EXCEPT ...

1. 
   

   cash outlays for current liabilities are relatively predictable.

   
   


2. 
   

   cash inflows are generally more predictable than cash outlays.

   
   


3. 
   

   the more predictable the cash inflows, the less net-working capital a firm needs.

   
   


4. 
   

   since most firms cannot match cash inflows and outflows with certainty, current assets that more than cover outflows of current liabilities are necessary.