Question
GUSTAV company has got annual sales volume of 400.000units for the last 4 years. The 2021 end stock in the balance sheet is 450.000 (854.320
GUSTAV company has got annual sales volume of 400.000units for the last 4 years. The 2021 end stock in the balance sheet is 450.000 (854.320 units x 0,53/unit).
- As per the balance sheet below, please calculate Net Working Capital and explain if the company is in a good or bad situation.
| Current Assets |
| Cash 150.000 |
| Stocks 450.000 |
| Accounts Receivable 50.000 |
| Current Liabilities |
| Short term debt 180.000 |
| Accounts payable 220.000 |
- The company want to buy a new warehouse in order to store all the units they have in stock. They want to ask the bank for a loan to return in 5 years.
- Do you think is a good option? Why?
- How would it affect the Net Working Capital?
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Human Resource Management
Authors: Robert L. Mathis, John H. Jackson
13th Edition
053845315X, 978-0538453158
