What is working capital from operations? Discuss what types of firms will have similar net income and working capital from operations? For which types of firms will net income and working capital from operations be significantly different?
Working capital from operations is defined as net income adjusted for changes in non-working capital accounts. These changes include depreciation, amortization, the equity method, deferred tax amounts, the minority interest in the earnings of consolidated subsidiaries and some restructuring charges. Companies that have mostly current operating assets, such as retailers who rent their space, will likely have similar net income and working capital from operations. Capital-intensive firms are more likely to have significantly different net incomes and working capital from operations.
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Which of the following best describes a similarity between Costco and Walmart?
A) Both are warehouse clubs. B) Both target the same affluent market. C) Both are specialty stores. D) Both use everyday low pricing. E) Both are examples of merchant wholesalers.
Freeman is an employee of Guitar & Drum Company. Guitar & Drum's employee manual states that workers, such as Freeman, will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is A) an example of the doctrine
B) an exception based on contract theory. C) an exception based on public policy. D) an exception based on tort theory.
Artistic Framing, a business with $120,000 of unsecured debt, needs to file for bankruptcy, but wants to continue in business. Discuss what chapter of the Bankruptcy Code should be used, and discuss the effect of the 2005 amendment to the Code on the proceedings
Which of the following is an appropriate null hypothesis?
a. The mean of a population is equal to 60. b. The mean of a sample is equal to 60. c. The mean of a population is not equal to 60. d. All of these choices are true.