What are the categories that constitute working capital versus net working capital?
What will be an ideal response?
Working capital is simply current assets. These categories would be the assets in cash, accounts receivable, and inventory.
Net working capital is current assets minus current liabilities and is a measure of the firm's liquidity. The higher the value, the greater the ability the company has to pay on debt.
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What effect is achieved by increasing the frequency of appraisals, up to a quarterly rate?
a. minimizing ethical damages b. causing high levels of stress among employees c. increasing profits d. encouraging a high turnover rate
A company purchased new furniture at a cost of $16,000 on January 1. The furniture is estimated to have a useful life of 6 years and a $1,000 salvage value. The company uses the straight-line method of depreciation. What is the book value of the furniture on December 31 of the first year?
A. $13,333 B. $13,500 C. $16,000 D. $15,000 E. $2,500
Blockbuster is a video rental and retail chain. Blockbuster is forecasting its financial statements for Year 3. Selected financial information for Years 1 and 2 is provided in the table
What is the interest expense for Blockbuster in Year 3? (Assume that Blockbuster's average cost of debt is 7.50%.) Selected Financial Information Blockbuster Inc ($ '000) Year 1 Year 2 Short Term Debt 31,890 162,430 Long Term Debt 1,137,256 798,300 Interest Expense 87,686 A) $70,341 B) $72,054 C) $80,667 D) $87,686 E) $135,166
What is a SWOT analysis? What might a SWOT analysis of your educational institution reveal?
What will be an ideal response?