Calculate the operating working capital

Assignment Help Business Management
Reference no: EM133032855

Problem:

Consider the following information.

Assets

 

Equity and liabilities

 

Cash

$500 000

Current debt

$200 000

Non-cash current assets

$900 000

Other current liabilities

$1 000 000

Minority equity investment

$100 000

Non-current debt

$300 000

Non-current assets

$500 000

Deferred tax liability

$100 000

 

 

Equity

$400 000

Total

$2 000 000

Total

$2 000 000

The company requires a cash balance of $300 000 for its operations.

Required:

Calculate the operating working capital. Comment whether the resulting operating working capital is an ideal amount for a company.

Reference no: EM133032855

Questions Cloud

Case study on apple profitable but risky strategy : When Steven Jobs , Apple's Chief Executive launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the company's strategy from th
What is the estimated value of inventory damaged : The merchandise saved from the flood has an estimated value of P 163,000. What is the estimated value of inventory damaged by the flood
Explaining the change phases in different leadership styles : Explaining the change phases in different Leadership Styles, what do you think is the most crucial/most consequential stage in this process and why?
How much is the carrying amount of buildings : Carmen corporation determined the value in use of the unit to be P535,000. How much is carrying amount of buildings at 31 December 2009
Calculate the operating working capital : Calculate the operating working capital. Comment whether the resulting operating working capital is an ideal amount for a company.
Research and identify the peculiar marketing strategies : Select a company based in UAE and discuss by how marketing mix decisions were impacted due to the COVID-19 pandemic
Criminal law requirement for jurisdiction : Explain the central components of the legal term and substantive criminal law requirement for jurisdiction
Compute the firm net operating income and net income : The interest rate on the company's debt is 5.6 percent, and its tax rate is 35 percent. Compute the firm net operating income and net income
Defining qualified immunity : List the reasons the Court gives for defining "qualified immunity" the way it does.

Reviews

Write a Review

Business Management Questions & Answers

  Ethical values and encourage ethical behaviour of people

What can an organization do to foster ethical values and encourage ethical behaviour of its people? How can organization structure contribute to this effort?

  America health care system

Can we repair what is wrong with America's Health Care System through understanding of Christian principles?

  Can you help me write it in psuedocode

Compute and display the price a person will pay for one train ticket to get from town X to town Y according to the following rules.

  Advantageous or disadvantageous to the united states

Discuss whether you see those trends as advantageous or disadvantageous to the United States, and how the United States can better position itself

  Ratio frequency inventory tags

National Scan, Inc., sells ratio frequency inventory tags. Monthly sales for a 6-month period were as follows:

  Requirements of the ontario human rights code

a. What are the employer's duties with respect to accommodation? b. What should you do to meet the requirements of the Ontario Human Rights Code?

  Discuss the consequences of the garbage

Discuss the consequences of the garbage can decision process for organizational decision making. What is values-based leadership? Give an example.

  Company performance differences within the same industries1

company performance differences within the same industries1. how is it that even among the best performing industries

  Determine whether the group is a sample or a population

Determine whether the group is a sample or a population.

  What kind of products or services will you offer

Imagine you are considering starting your own business.

  Forecast quantity and customer orders

Explain the relationship between MPS, due, forecast quantity, and customer orders

  Differences in the quality of those products

Compare a $100,000 median family income in 1980 to the same income in 1990, 2000, and 2010. What are the differences in the available products? What are the differences in the quality of those products? Considering this, in which of those years wo..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd