Answer:
Working capital is essential to a company's fundamental health and operational success. It helps in maintaining a solid balance between growth, profitability and liquidity.
Net working capital is the difference between a business/ company's current assets and current liabilities or debts.
Current assets are cash, accounts receivable and inventories of raw materials and finished goods
Current liabilities are accounts payable.
Explanation:
Working capital helps to maintain smooth operations and help improve a company's earnings and profitability and it includes:
1. Inventory management
2. Management of accounts receivable and account payable.
Answer:
cash 910,000 debit
bonds payable 850,000 credit
premium on BP 60,000 credit
-- to record issuance of bonds --
interest expense 63700 debit
amortization 4300 credit
cash 68000 credit
--to record coupon payment at December 31th--
Explanation:
issuance:
cash proceed of 910,000 face value of 850,000 the 60,000 difference wil be a premium.
interest entry:
we multiply the carrying value of the bonds by the market rate
we calcualte the cash procees as ussual: face value x bond rate
the difference wil be the amortization on premium
910,000 x 7% 63,700
850,000 x 8% 68,000
amorization 4,300
I believe the answer would be “B. Decrease” apologies if it’s incorrect!
True. With competition in a market, firms have to compete to stay ahead of the others
