Why is it important to understand and manage net working capital?
What will be an ideal response?
The stock of net working capital is the amount of inventory, cash, and accounts receivable minus accounts payable that the firm must have on hand to run its business. If the business can be run with a lower net working capital, this amount of assets could be given to investors. Conversely, increases in net working capital use after-tax profits that the firm could otherwise use to finance capital expenditures or pay to investors. As such, changes in net working capital are investments that the firm makes in its future profitability.
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What is substantial performance?
What will be an ideal response?
A company had beginning inventory of 12 units at a cost of $18 each on March 1. On March 2, it purchased 12 units at $30 each. On March 6 it purchased 7 units at $23 each. On March 8, it sold 28 units for $66 each. Using the FIFO perpetual inventory method, what was the cost of the 28 units sold?
A. $668 B. $558 C. $737 D. $644 E. $576
A(n) ______ approach to pay determination uses job evaluation.
A. external B. internal C. pay D. structure
What is the name of a company's internal computer department?
A. Information systems (IS) B. Information technology (IT) C. Management information systems (MIS) D. All of these