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
Gelneren [198K]
3 years ago
13

Jarrett Baker is the founder of an enterprise software company located in Chevy Chase, Maryland. By looking at the income statem

ents for Jarrett’s business over the past 3 years, you see that its working capital has declined from $42,400 in 2012 to $17,900 in 2013 to $3,100 in 2014. If this trend continues, in what ways could it jeopardize the future of Jarrett’s business?
Business
1 answer:
Westkost [7]3 years ago
3 0

Answer and Explanation:

In this particular case, the working capital continues to fall and hits a value below zero otherwise the business would have a negative cash flow.

Company's assets are below its liabilities which including its current working capital would not be able to manage its debts. The Company would be faced with extreme difficulty in paying back its creditors.

If, as in the case at hand , the company continues to operate in low working capital and work capital declines over time, the company can encounter extremely serious financial problems.

Following Effects may include declining revenue from purchases, non-inventory management, or issues with the specific total accounts receivable.

You might be interested in
List the pros and cons of partnerships.​
sergey [27]
Pro-you’re never lonely , you have someone to talk with , you and your partner are more open , it creates a healthy mentality’s, you’re able to communicate with each-other , learn and grow with each-other, learn together ,learn about one’s difficulties . Cons- end up hurt , lose trust , see everyone differently, learn from past experiences, become a better version of your self
6 0
2 years ago
What does it mean if a company has a debt ratio of 101.5%?
7nadin3 [17]

Explanation:

Debt ratio is basically the ratio between the total debts and the total assets of a company. It shows the percentage of total debts of the company in accordance or in comparison of the total assets. If the debt ratio is high, it means the company has more liabilities than the assets. Higher debt ratio may lead a company towards default.

In this question, 101.5% debt ratio means the total liabilities of the company are 1.5% more than the total assets of the company. This shows that the company's debt ratio is high. Liabilities are more than the assets. In this situation, a company is considered at a risk if precautionary measures are not taken immediately.

6 0
3 years ago
True or false: every sigma chi committee, including the executive committee and education and leadership board, have at least on
xeze [42]
YES ALL MAJOR COMMITTES AND BOARDS OF THE GENERAL FRATERNITY
4 0
3 years ago
What is an optical cue?
N76 [4]

answer well they  provide depth information when viewing a scene with both eyes.

i don't know how else to explain it

4 0
3 years ago
Which activity does economics primarily study?
SashulF [63]

Answer:

c. best utilization of scarce resources

Explanation:

Economics is the study of how society uses its scarce resources to meet the insatiable needs of its members. Resources are the inputs that a county uses to produce goods and services. They are the four factors of production.

Human needs are unlimited and cannot be satisfied with the available scarce resources, necessitating human beings to make choices. Economics will involve analyzing production decisions amidst limited resources. It also analyses how the goods produced are distributed to satisfy the different needs and wants of its members.

3 0
2 years ago
Other questions:
  • Which economic advantages does the united states have compared to other nations?
    11·1 answer
  • When asked to memorize the 15 letters, c i a c b s a b c f b i i r s mary reorganized them into cia, cbs, abc, fbi, and irs. mar
    6·1 answer
  • The ________ concept is aligned with the philosophy of continuous product improvement and the belief that customers will choose
    5·1 answer
  • Jasper Furnishings has $225 million in sales. The company expects that its sales will increase 10% this year. Jasper's CFO uses
    6·1 answer
  • Which of the following statements about business processes is not true?Question 3 options:A) Business processes are a collection
    9·1 answer
  • Disparate treatment could be legal if the discrimination: a. results in increased efficiency. b. is performed by a governmental
    7·1 answer
  • You are the account manager for an Internet service provider. A customer contacts you and complains that her recent billing stat
    13·1 answer
  • Which of the following statements is correct?
    14·1 answer
  • How much does the sky weigh?
    11·2 answers
  • Many developed countries have deindustrialized and are transitioning to a postindustrial economy. A. Identify and describe the e
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!