Discuss the importance of cash on hand

Assignment Help Finance Basics
Reference no: EM131488173

Discussion: Managing Working Capital

Oftentimes businesses will fail because their method of managing working capital does not focus on the importance of sustaining working capital and managing the flow of cash through the business. Every new organization needs enough working capital to setup the business, pay operating costs, and continue to operate until payment arrives 30, 60 or maybe even 90 days later. However, if a business uses a lot of their working capital to pay for fixed assets, they may find they cannot pay suppliers, buy materials, or even pay employees' salaries. Discuss the importance of cash on hand and how it affects the strength of the business. Would you agree that the amount of cash on hand is a factor when comparing like businesses?

Reference no: EM131488173

Questions Cloud

Illustrate the impact of this change in interest rate : Use the model of aggregate demand and aggregate supply to illustrate the impact of this change in interest rate on output and the price level in the short run.
What is the present value of the given : A $100 perpetuity discounted back to the present at 9 percent d. A $95 perpetuity discounted back to the present at 5 percent.
What the forecast for iphones would be in the next year : Would you want to know what the forecast for iPhones would be in the next year, 5 years, and 10 years? Why would this information be important? Explain.
Mythological criticism : Queer theory is not only about homosexual representations in literature; it also explores the categories of gender, as well as sexual orientation.
Discuss the importance of cash on hand : Discuss the importance of cash on hand and how it affects the strength of the business. Would you agree that the amount of cash on hand is a factor?
What is being invested to receive an acceptable return : What is being invested to receive an acceptable return. Discuss one or two methods used in the capital budgeting process and the advantages that each represent.
Discuss in detail how to calculate net present value : Discuss in detail how to calculate net present value. Why profitability, as a result of a purchase, must equal or exceed cost of capital to be deemed worthy.
Design network infrastructure case study : Discuss what changes have to incorporated to make the switch to a fully IPv6 environment, the commands that need to be configured on the devices
Monopolist profit maximizing calculations : Still having some problems understanding how to calculate these economics equations. I haven't taken calculus yet, so some of the concepts seem foreign.

Reviews

Write a Review

Finance Basics Questions & Answers

  Which bank would you prefer to deposit your money

Universal Bank pays 7 percent interest, compounded annually, on time deposits. Regional Bank pays 6 percent interest, compounded quarterly. a. Based on effective interest rates, in which bank would you prefer to deposit your money?

  Discuss the potential issues that walmart will face

Discuss the potential issues that Walmart will face operating in 27 countries.

  Decline in the price of bacon

1. If the demand for bacon is relatively elastic, a 10 percent decline in the price of bacon will:

  Determining the yield to maturity of the bond

Question: What is the yield to maturity of the bond? Note: Please provide step by step solution.

  Hanebury corporations current sales were 12 million sales

hanebury corporations current sales were 12 million. sales were 6 million 5 years earlier.a. to the nearest percentage

  Calculating the monthly payment

A loan of $8000 is to be repaid with monthly payments for three years at 12% interest compounded monthly. Calculate the monthly payment.

  Calculating cost of equity

The Dybvig Corporation's common stock has a beta of 1.7. If the risk-free rate is 4.8 percent and the expected return on the market is 10 percent, what is Dybvig's cost of equity capital? (Do not round intermediate calculations and round your fina..

  The strategic factor that involves the beliefs values

1.the strategic factor that involves the beliefs values attitudes opinions and lifestyles of persons in the firmrsquos

  What will be the net cash flow for year one of this project

The firm has a tax rate of 30 percent, an opportunity cost of capital of 12 percent, and it expects net working capital to increase by $57,000 at the beginning of the project. What will be the net cash flow for year one of this project?

  What is the dollar amount of interest paid

Horizon Telecom sold $300,000 worth of 120-day commercial paper for $298,000. What is the dollar amount of interest paid on the commercial paper? What is the effective 120-day rate on the paper?

  Browsing on the mobile device

A 2014 survey of 280 American adults indicates that 30% of cell phone owners do their browsing on their phone rather than a computer or other device.

  Explain which account would earn more money for the investor

Explain which account would earn more money for the investor

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