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belka [17]
1 year ago
15

What are the different elements of working capital and explain actions that Management of a business entity might take to reduce

the length of the cycle
Business
1 answer:
faltersainse [42]1 year ago
4 0

The different elements of working capital are <u>current current asset and current liabilities</u>. The management of a business entity might take <u>ratio analysis</u> to reduce the cycle.

Working capital management assists in sustaining the smooth operation of the net operating cycle, otherwise called the cash conversion cycle.

<h3>What is working capital management?</h3>

Working capital management is a business strategy formulated to ensure that an organisation functions efficiently by overseeing and utilizing its current assets and liabilities to their most effective use.

Therefore, learn more about working capital management: brainly.com/question/28287025

#SPJ1

You might be interested in
A company could improve its acid-test ratio by selling some equipment it no longer needs for cash. a. True b. Flase
kari74 [83]

Answer:

true

Explanation:

acid test ratio can be calculate by ( Current assets – Inventory ) / Current liabilities. Ideally, the acid test ratio should be 1:1 or higher, however this varies widely by industry. In general, the higher the ratio, the greater the company's liquidity. by selling up equipment in exchange of cash, the will assist the company to be able to handle its current liability with the cash injection into the entity.

3 0
2 years ago
The following information is from the annual financial statements of Nancy Company.
lakkis [162]

Answer:

5.79 times

Explanation:

The computation of the Accounts receivable turnover ratio  

= Credit sales ÷ average accounts receivable

where,  

Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2

= ($46,400 + $49,700) ÷ 2

= $48,050

And, the net credit sale is $278,000

Now put these values to the above formula  

So, the answer would be equal to  

= $278,000 ÷ $48,050

= 5.79 times

5 0
3 years ago
You were recently hired by RLM Inc. It is your job to prepare reports and analyze financial information related to the company.
Alex73 [517]

Answer:

d. management

Explanation:

Based on the job tasks described within the question it seems that you were recently hired as a management accountant. This role focuses on (like mentioned in the question) preparing reports and analyzing as much financial information as possible in order to best inform yourself, so that you can help you make the best and most strategic decisions for the organization. Which seems to by why RLM Inc. has hired you.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
2 years ago
Debt analysis Springfield Bank is evaluating Creek​ Enterprises, which has requested a $ 3 comma 620 comma 000 ​loan, to assess
stepan [7]

Answer:if the debt ratio is lower,the loan request should be granted but if it is higher the loan request should not be granted by the bank.

Explanation:

Debt ratio is a financial ratio which shows the ability of a firm to pay their debt as they fall due.lenders are more concerned with the liquidity position of a firm in order to guarantee the solvency of the firm whenever a loan is granted to such a firm. The debt ratio is used to know the financial leverage of a firm and the financial risk involved in lending to such firm. When a firm is said to be highly leverage it means that such a firm will find it difficult to pay their debt as they fall due because the liabilities in their balance sheet is more than their assets. Debt ratio is calculated as

Total Liabilities/ Total Assets

The Debt ratio is calculated from the Liabilities and Asset figures obtained from their balance sheet. When it is calculated, lower ratio is more preferable than higher rato because it means that a firm will find it easy to settle their debt to their lenders as that debt fall due.but a higher ratio is an indication that such firm will not be able to meet their debt obligation to their lenders as they fall due. Therefore, when a firm has a higher debt ratio it is not advisable to grant a loan to such a firm by the bank. As regard the loan request of Creek Enterprises from Springfield bank, if the debt ratio of Creek Enterprises is lower, the loan should be granted but if it is higher the bank should not grant the loan.

5 0
3 years ago
Which parameter of the marketing mix includes decisions on distribution channels?
MA_775_DIABLO [31]

Answer:

The answer is Place

Explanation:

In the marketing mix, the process of moving products from the producer to the intended user is called place. In other words, it is how your product is bought and where it is bought. This movement could be through a combination of intermediaries such as distributors, wholesalers and retailers.

6 0
3 years ago
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