Reference no: EM132954725
Question - Working capital is that portion of capital which is required for holding current assets like stock of materials and finished goods, accounts receivable and cash for meeting current expenses like salaries, wages, taxes, rent, etc.
Using the Financial Statements from the Task A, calculate the liquidity ratios for two years and comment on the same.
You are required to identify factors why a company would have working capital shortages and how to improve the working capital management of the company.
Answer the following questions,
Mr. Khalil is planning ahead for his son's education. He's eight years old now and will start college in 10 years for which Mr. Khalil will require $45,000 in 10 years.
How much will he have to set aside today if the annual interest rate is 6% and bank compounds it semi-annually?
How much will he have to set aside today at the same rate, if the bank does a monthly compounding?
Explain the difference in your answers above.
Aamir deposits $7,500 and expects to get $15,000 after six years.
What would be his expected rate of return?
If he expects to get 14,000 after six years, what rate of return is he expecting?