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

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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