Why is an analysis of working capital important?
What will be an ideal response?
An analysis of working capital is important in order to determine a firm's capacity to meet current obligations. In analyzing working capital, the normal working capital requirements of both a company and industry should be considered. In addition, the components of working capital (such as accounts receivable, accounts payable and so forth) should be assessed. For example, although accounts receivable are considered to be liquid, an increase in the average days receivables (which is accounts receivable divided by annual sales on credit times 365) that are outstanding may be an indication that a higher level of working capital is needed for the efficient running of the operation. In addition, companies frequently have account receivable financing, some with recourse provisions. In this scenario, comparisons among companies in the same industry may be distorted.
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Indicate whether the statement is true or false
What are the issues in sharing content via email attachments.
What will be an ideal response?
Under the UCC, for good to be merchantable means that they must be "of exceptional quality expected of an expert."
a. True b. False Indicate whether the statement is true or false
Which of the following is a key difference between collaborative teams and cooperative teams?
A) Cooperative teams work to accomplish a specific task, whereas collaborative teams need not have a collective purpose. B) People work together in collaborative teams, whereas each member works independently in cooperative teams. C) Collaborative teams reduce the amount of time required to finish a task, whereas cooperative teams require more time. D) Cooperative teams achieve their objectives via communication and iteration, whereas collaborative teams achieve by working alone.