Why is the efficient utilization of net working capital important?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (14 reviews)
Net working capital NWC is defined as the difference between current ...View the full answer
Answered By
Rohail Amjad
Experienced Finance Guru have a full grip on various sectors, i.e Media, Insurance, Automobile, Rice and other Financial Services.
Have also served in Business Development Department as a Data Anlayst
4.70+
32+ Reviews
83+ Question Solved
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
Question Posted:
Students also viewed these Corporate Finance questions
-
Why do we consider changes in net working capital associated with a project to be cash inflows or out-flow rather than consider the absolute level of net working capital?
-
Why does it make sense to finance net working capital separately from fixed assets?
-
a. Why is it important to keep paid-in capital separate from earned capital? b. As an investor, is paid-in or earned capital more important? Why? c. As an investor, are basic or diluted earnings per...
-
Tort cases are so common that it is likely you or someone you know has been involved in a tort case. If so, share what the case was about, what the outcome was, and how you felt about the case and...
-
Assume that a country's real growth is 2 percent per year, while its real deficit is rising 5 percent a year. a. Can the country continue to afford such deficits in-definitely? b. What problems might...
-
Explain how contingent consideration affects the valuation of assets acquired in a business combination accounted for by the purchase method. LO4
-
3. Under the goodwill approach, what is the amount of goodwill that should be recognized by the partnership?
-
Rex Baker and Ty Farney are forming a partnership to which Baker will devote one-half time and Farney will devote full time. They have discussed the following alternative plans for sharing income and...
-
6 Beginning Ending Balance Balance $ 132,eee $ 133, ce 345, eee 481,800 560,eee 472.000 833, eee 824, eee 391,600 426,000 251,000 247,000 $ 2,512,000 $ 2,583,080 135 Assets Cash Accounts receivable...
-
Jimmy owns a garden in which he has planted N trees in a row. After a few years, the trees have grown up and now they have different heights. Jimmy pays much attention to the aesthetics of his...
-
MB Corporation has a receivables turnover of 10, an inventory turnover of 15, and a payables turnover of 5. Calculate its cash conversion cycle . What does a negative cash conversion cycle tell you...
-
Explain the difference between the receivables turnover ratio and the average collection period (ACP).
-
What is a statement of retained earnings?
-
You have been employed as a systems analyst in the information systems organization of a medium-sized consumer goods manufacturer for three years. You are quite surprised when your manager offers you...
-
For your initial post, address the following: First, introduce yourself to the class by sharing a bit about yourself, such as your preferred name or pronouns, where you are from, what your major is,...
-
Question 8 : Consider the technology of Solar Panels. Which stage of the technology life cycle S curve is this technology in. Justify why ? Question 9 : The standard Product Life Cycle has 5 stages...
-
At Benihana restaurant a man wrenched his neck while ducking a piece of flying shrimp, requiring treatment by several doctors. By that summer, doctors determined surgery was necessary to treat...
-
You have just come into an inheritance of $25,000 from a distant relative, and you want to invest it for the long term. Provide an investment portfolio that includes five different stocks. Report the...
-
How John Edwards ruined his reputation by having an affair, covering it up, and then not admitting to fathering a child out of wedlock. Shortly after the Edwards disclosure, the public was stunned to...
-
Why is inventory management important for merchandising and manufacturing firms and what are the main tradeoffs for firms in managing their inventory?
-
The cost of reworking defective products before shipping to customers would be classified as which type of quality costs? a. Prevention cost b. Appraisal cost c. Internal failure cost d. External...
-
What are the major disadvantages of the use of the internal rate of return method of analyzing capital investment proposals?
-
What are the major disadvantages of the use of the internal rate of return method of analyzing capital investment proposals?
-
What are the major disadvantages of the use of the internal rate of return method of analyzing capital investment proposals?
-
Assignment Title: The Role of Bookkeeping in Business Management and Financial Reporting Objective: Understand the importance of proper bookkeeping procedures in the management of...
-
17) The adjustment that is made to allocate the cost of a building over its expected life is called:A) depreciation expense.B) residual value.C) accumulated depreciation.D) None of the above answers...
-
9) Prepaid Rent is considered to be a(n):A) liability.B) asset.C) contra-asset.D) expense.10) As Prepaid Rent is used, it becomes a(n):A) liability.B) expense. C) contra-asset.D) contra-revenue.11)...
Study smarter with the SolutionInn App