1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kaheart [24]
3 years ago
9

Why is working capital management one of the most important and time-consuming activities of the financial manager? What is net-

working capital?
Business
1 answer:
dybincka [34]3 years ago
7 0

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.

You might be interested in
Better Corp. (BC) began operations on January 1, Year 1. During Year 1, BC experienced the following accounting events: 1. Acqui
yuradex [85]

Answer:

Better Corp. (BC)

a. Accounting Equation

Assets                =       Liabilities       +               Equity

1. Cash $7,000                                                   Common stock $7,000

2. Cash $12,000        Bank loan payable $12,000

3. Cash $47,000                                                Service Revenue $47,000

4. Cash ($30,000)                                              Op. expenses ($30,000)

5. Cash ($8,000)                                                Cash dividend ($8,000)

6. Land $20,000 Cash ($20,000)

Assets $28,000   =  Liabilities $12,000  + Equity $16,000

b. December 31, Year 1 Balances:

Total assets = $28,000

Total liabilities = $12,000

Stockholders' equity = $16,000

Balance Sheet as of December 31, Year 1

Assets:

Cash                     $8,000

Land                  $20,000

Total assets      $28,000

Liabilities:

Bank loan         $12,000

Equity:

Common stock $7,000

R/Earnings          9,000

Total equity    $16,000

Liabilities and

 Equity          $28,000      

c. January 1, Year 2 Balances:

Total assets = $28,000

Total liabilities = $12,000

Total equity = $16,000

d. The Land will be shown on the December 31, Year balance sheet at $20,000.  The reason is that this is the acquisition cost and the land is not held for trading (no information provided).

Explanation:

a) Data and Analysis based on the Accounting Equation:

1. Cash $7,000 Common stock $7,000

2. Cash $12,000 Bank loan payable $12,000

3. Cash $47,000 Service Revenue $47,000

4. Cash ($30,000) Operating expenses ($30,000)

5. Cash ($8,000) Cash dividend ($8,000)

6. Land $20,000 Cash ($20,000)

4 0
3 years ago
You just won the grand prize in a national writing contest! As your prize, you will receive $500 a month for 50 months. If you c
nadya68 [22]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Cash flow= $500

Number of months= 50

Monthly interest rate= 0.07/12= 0.00583

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= cash flow

FV= {500*[(1.00583^50) - 1]} / 0.00583

FV= $28,928.06

Now, the present value:

PV= FV/(1+i)^n

PV= 28,928.06/(1.00583^50)

PV= $21,631.67

5 0
3 years ago
Assume the current U.S. dollar-yen spot rate is 90 ¥/$. Further, the current nominal 180-day rate of return in Japan is 1% (annu
Citrus2011 [14]

Answer:

Explanation:

Forward excahnge rate/spot exchange rate = (1+rh)/(1+rf)

rh - periodic interest rate in the home currency

rf - periodic interest rate in the foreign currency

Forward/90 = [1+1%*180/360]/[1+2%*180/360]

Forward = 1.005/1.01 * 90 = 89.55

Forward rate is 89.55 yen/$

3 0
3 years ago
Christie operates a small cookie business. what type of income does she earn? a. earned income b. unemployment income c. investm
faust18 [17]

So, the correct option is A (Earned income)

Small Business

Generally speaking, a small business is a privately held corporation, partnership, or sole proprietorship with fewer employees and lower yearly income than a corporation or regular-sized business. In terms of being eligible for government assistance and advantageous tax treatment, the meaning of "small" differs by nation and sector. According to a set of criteria based on particular industries, the U.S. Small Business Administration determines what constitutes a small business.

To learn more about Small Business

brainly.com/question/27968241

#SPJ4

5 0
1 year ago
Which of these resources do
xeze [42]

Answer:

B. Capital

Explanation:

It would be capital because households pay for the certain goods or services a business has to offer, therefore giving them money. The word "Capital" means funds/money, and since the households are giving the businesses money, they care supplying capitals.

4 0
3 years ago
Other questions:
  • Is the statement below true or​ false? ▼ True False . ​(Select from the​ drop-down menu.) The cash surplus can be used for a var
    12·1 answer
  • According to Duffy-Deno (2003), when the price of broadband access capacity (the amount of information one can send over an Inte
    7·1 answer
  • Steve, an engineer in a construction company, is at present working on a home construction project. the home is being built for
    7·1 answer
  • How are contract law and torts related?
    14·2 answers
  • Frank asks his customers to complete a survey about the service they receive at his company so that he and his staff can make ad
    5·1 answer
  • Todd has made total contributions of $75,000 to his traditional IRA of which $15,000 were nondeductible contributions. Todd is 6
    12·1 answer
  • "other things being​ equal, which market structure would produce the least output and the highest average product​ price
    5·1 answer
  • Kendall is investing $3,333 today at 3 percent annual interest for three years. Which one of the following will increase the fut
    9·1 answer
  • 6. Respirators must be certified by the National Institute for Occupational Safety and Health, or NIOSH, and used in compliance
    9·2 answers
  • ________ conservation involves the sampling, transferring, and storage of a species in a place other than the original location
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!