Working capital, Finance Basics

Assignment Help:

Working Capital

a) Working capital or called gross working capital also, refers as current assets.

b) Net working capital refers to current assets minus current liabilities.

c) Working capital management of current liabilities and current assets refers to the administration.

  1. Target levels of each kind of current assets
  2. How current assets will be financed

d) Liquidity management includes the planned acquisition and employ of liquid resources over time to meet cash obligations like they become due. The firm's liquidity is measured with liquidity ratio like as current ratio, acid or quick test ratio, cash ratio and so on.


Related Discussions:- Working capital

Foreign trade balance, Foreign Trade Balance If the Government buys or...

Foreign Trade Balance If the Government buys or imports much more than it sells or exports there will be a trade deficit such will require financing.The most important source

Functions of the financial markets, Functions of the Financial Markets ...

Functions of the Financial Markets Functions of the Financial Markets or Institutions in Economy 1. Allocation of financial resources to the mainly productive units. Saving

Homework, the two problems below (P1 and P2). Five marks each. Part marks w...

the two problems below (P1 and P2). Five marks each. Part marks will be allocated, but if you have the incorrect answer then you cannot expect to get more than half marks. Project

Circle the new equilibrium if there is an increase in price, a.  In the acc...

a.  In the accompanying diagram (which represents the market for chocolate candy bars), the initial equilibrium is at the intersection of S1 and D1. Circle the new equilibrium if t

Should the short-run effects on eps influence the ch, A firm has a $100 mil...

A firm has a $100 million capital budget. It is considering two project, each costing $100 million. Project A has an IRR of 20%; has an NPV of $9 million; and will be terminated af

Percentage of sales method - financial forecasting, Percentage of Sales Met...

Percentage of Sales Method - Financial Forecasting This method includes expressing various balance sheet items such are directly concerned to sales as a percentage of sales.

Financial management, Financial Management On the other hand a financi...

Financial Management On the other hand a financial manager has to meet the company's strategic or long term needs as long term investment are helpful to the company since:

What are depository institutions, What are depository institutions? Dep...

What are depository institutions? Depository institutions: intermediaries along with an important proportion of their funds derived through customer deposits as consists of: co

Irr or internal rate of return, IRR or Internal Rate of Return This me...

IRR or Internal Rate of Return This method is a discounted cash flow technique that uses the principle of NPV.  It is described as the rate such equates the present value of c

Stock market index, Stock Market Index Definition of Stock Market Ind...

Stock Market Index Definition of Stock Market Index An index is a numerical figure that measures relative change in variables between two type of durations. Examples

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