Company is Johnson & Johnson.

• Financial Statements: Explain the various financial statements needed to calculate a businesss working capital. Also explain how to use each financial statement for the calculation. Give examples to support your claims.
• Working Capitals Role: Discuss how businesses that manage their working capital well stay healthy.
• Working Capital Interpretation: Use the correct formula to calculate working capital. Then discuss the businesss current financial liquidity position.
  • For example, does the business have enough working capital ready to address bills to suppliers? Will there be potential cash inflow at the end of the year?
• Working Capital Management Trend: Discuss the businesss trend in how they manage their working capital.
  • Remember that financial statements reflect a specific period of time and the value of the businesss working capital during that period. Use Mergent Online to find financial statements for earlier periods. This will give you a better sense of the businesss trend.