Differences in working capital for different industries, Financial Management

Assignment Help:

Differences in working capital for different industries


 

Manufacturing

Retail

Service

Inventories

High volume.

WIP and finished goods

Goods  for  re-sale  only,

usually low volume

No  or  very  little

inventories

Trade

Receivables

High  levels  of  debtors,  as dependant  on  a  few customers

Very  low  levels  as  most

goods bought by cash

Usually  low  levels as services are paid for immediately

Trade

Payables

Low  to  medium  levels  of Payables

Very  high  levels  of  trade

payables  due  to  the  huge

purchases of inventory

Low  levels  of

payables


Related Discussions:- Differences in working capital for different industries

Guaranteed income supplement, In addition to the public pension plans, Rob ...

In addition to the public pension plans, Rob and Ellen also have RRSPs.  What options will they have when they retire if they want to draw money from their RRSPs?  Identify one str

Eurodollar, Eurodollar U.S. currency held on deposit in banks located ...

Eurodollar U.S. currency held on deposit in banks located outside the United States, mainly in Europe. Eurodollars are mostly used for settling international transactions outs

Expected monthly return, In this exercise you will construct efficient port...

In this exercise you will construct efficient portfolios with 5 risky assets using Excel's non-linear optimization routing "Solver". The questions are designed to be sequential and

Calculate the new interest rate and excel function pv, I want to see the so...

I want to see the solution that was provided in Feb 2013 for Calculate the new interest rate and excel function pv, Financial Accounting

What is corporate social responsibility, (a) The term "financial reporting"...

(a) The term "financial reporting" incorporates not only financial statements, but also includes other means of communicating financial and non-financial information. Financial rep

Show objections against profit maximization, Q. Show objections against pro...

Q. Show objections against profit maximization? 1) Profit cannot be ascertained well in advance to express the. Probability of return as future is Uncertain. It is not at all p

Evaluate the under-pricing or over-pricing, Assume that you work with a lar...

Assume that you work with a large financial consulting firm. You are one of the junior financial consultants there specializing in IPO issue. A team of foreign investors has recent

Discuss the process of maximise profits, Discuss the process of  Maximise ...

Discuss the process of  Maximise Profits Let's first look at profit maximisation.  Profit (also known as net income or earnings) canbe defined as the amount a business earns af

Interpretations of market based ratio''s, Market based Ratio's   PE:...

Market based Ratio's   PE:           The Price-to-Earnings ratio is calculated by market price per share to earnings per share and is expressed in terms of times. It shows h

Value of conversion benefits, Value of Conversion Benefits: Having seen...

Value of Conversion Benefits: Having seen the measure used to analyze the convertible bonds, let us now examine the merits and demerits of convertible bonds and why or why not

Write Your Message!

Captcha
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