What can a business that has too little working capital do to increase it?
· Decrease inventory
· Increase short-term liabilities
· Reduce current assets
· Increase cash on hand
What can a business that has too little working capital do to increase it? · Decrease...
A business that has too little working capital can take what action? Reduce cash on hand Reduce credit to consumers Increase inventory Increase short-term financing
Working Capital. How should a business use working capital analysis? which is more important to the short term lender: the stock of cash flow or the flow of cash? Is it possible in today's business to operate with no current liabilities?
Think a little deeper - What does the Current ratio (or amount of Working Capital tell us)? Hint - what do we expect to happen to current assets and current liabilities?
Drop-down options: (number value), (number value), (number
value), (1.37x, 0.40x, 2.50x, 1.33x), (increase, decrease, stay
same).
1. Calculating working capital Roost and Sing Corp.'s CFO has decided to take a closer look at the firm's short-term assets and liabilities. Roost and Sing Corp.'s balance sheet follows. Balance Sheet Cash $170,000 Accounts receivable $55,000 $200,000 $110,000 $170,000 $480,000 Inventory $135,000 Total current assets Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total common equity Total liabilities and equity $360,000...
1- which one of the following is not included in net working capital? A) account receivable , B) retained earnings, C) cash and cash equivalent , D) prepaid expenses, E) Account payable. 2- Depreciation does which one of the following for a profitable firm? A) has no effect on net income, B) decrease net working capital, C) decrease net income, D) increase net income, E) increase taxes 3- a firm has a current ratio 0.9, given this you know for...
Working capital: Mukhopadhya Network Associates has a current ratio of 1.60, where the current ratio is defined as follows: current ratio = current assets/current liabilities. The firm’s current assets are equal to $1,233,265, its accounts payables are $419,357, and its notes payables are $351,663. Its inventory is currently at $721,599. The company plans to raise funds in the short-term debt market and invest the entire amount in additional inventory. How much can notes payable increase without the current ratio falling...
Effect of Transactions on Working Capital, Current Ratio, and Quick Ratio The following account balances are taken from the records of Redon Corp.: Cash Short-term investments Accounts receivable Inventory Prepaid Insurance Accounts payable Taxes payable Salaries and wages payable Short-term loans payable Required: $69,000 58,000 72,000 100,000 10,000 75,000 25,000 40,000 210,000 1. Use the information provided to compute the amount of working capital and Redon's current and quick ratios (round to three decimal points). Use the minus sign to...
Question 9 Partially correct Mark 0.75 out of 1.00 Remove flag Working Capital and Short Term Liquidity Ratios Bell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows: Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Current assets $36,400 50,000 169,000 200,000 11,600 $467,000 Bell Company's current liabilities at the beginning of the year were $136,000 and during the year its operating activities provided a cash flow of...
Q. Rao Corporation has the following balance sheet. How much net operating working capital does the firm have? Cash $ 10 Accounts payable $ 20 Short-term investments 30 Accruals 20 Accounts receivable 50 Notes payable 50 Inventory 40 Current liabilities $ 90 Current assets $130 Long-term debt 60 Net fixed assets 100 Common equity 30 Retained earnings 50 Total assets $230 Total liab. & equity $230
1. Based on the following data, what is the amount of working capital? Accounts payable....................$32,000 Accounts receivable....................64,000 Accrued liabilities....................7,000 Cash.........................................20,000 Intangible assets............................40,000 Inventory...............................................72,000 Long-term investments...............................100,000 Long-term liabilities.....................................75,000 Marketable securities.................................35,000 Notes payable (short-term)........................20,000 Property, plant, and equipment.................625,000 Prepaid expenses.........................................2,000 WHAT IS WORKING CAPITAL? a. $162,000 b. $134,000 c. $193,000 d. $62,000 2. Use the following data to determine the total dollar amount of assets to be classified as current assets. Cash..............................................$60,000 Prepaid insurance..........................40,000 Accounts receivable......................50,000 Inventory.........................................70,000 Land held for investment................80,000 Land................................................95,000...