Answer the following questions: A. What is the formula to compute working capital? B. What does it measure? C. What would be the implication for a company that has negative working capital?
A. Working capital = Current assets - Current liabilities
B. It measures liquidity - the ability for a company to pay its short-term obligations as they become due.
C. Negative working capital would imply that a company is not liquid. They would have difficulty paying their short-term obligations as they become due. Negative working capital would be a cause of concern for stakeholders. The company would be more likely to go out of business in the short-run unless financing (debt or equity) comes through, that allows them to be liquid.
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A. cost leadership focus B. differentiation C. differentiation focus D. overall cost leadership
An agent acting at the direction of the principal may render the principal liable if the agent:
A. commits a tort or crime. B. is acting on behalf of a nonexistent or incompetent principal. C. does not disclose the principal's name for the duration of the performance under the contract. D. delegates ministerial activities to other employees of the principal.
Which of the following is the current group within the International Accounting Standard Board organization that interprets existing standards or provides guidance in areas for which no accounting formal standard exists?
a. Standing Interpretations Committee b. International Accounting Standards Committee c. Emerging Issues Task Force d. International Financial Reporting Interpretations Committee
One of the three major dimensions of measuring activity performance is quality
Indicate whether the statement is true or false