A relatively low sales to working capital ratio is a tentative indication of an efficient use of

Question:

A relatively low sales to working capital ratio is a tentative indication of an efficient use of working capital. Comment. A relatively high sales to working capital ratio is a tentative indication that the firm is undercapitalized. Comment.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Reporting and Analysis Using Financial Accounting Information

ISBN: 978-1439080603

12th Edition

Authors: Charles H Gibson

See More Books

Question Posted: Jun 22, 2012 09:19 AM

See More Questions

Indicate the objective of the sales to working capital ratio.
A firm is currently employing an "aggressive" working capital policy with regard to the level of current assets it maintains (relatively low levels of current assets for each possible level of...
Working Capital and Current Ratio A company reported current assets of $80,000 and current liabilities of $60,000. Compute the amount of working capital and the current ratio.
Columbiana: A small, independent Caribbean island that wants to develop its tourist industry and attract more visitors. How can a Web presence help? What Internet business model would be appropriate?...
Design the HARDWARE INVENTORY LISTING Web page, showing the computers available in each room at each campus. The CAMPUS is selected from a drop-down list displaying the CAMPUS DESCRIPTION. When the...
Pneu Shoe Company manufactures various types of athletic shoes. Several types require a built-in air pump. Presently, the company makes all air pumps it requires. However, management is evaluating an...
In an earlier SIOP salary survey (Katkowski \& Medsker, 2001), 73 of the respondents ( 33 males, 40 females) received their master's degrees in the 10 -year period from 1991 to 2000. Listed below are...
Justin Corporation had these transactions pertaining to debt investments: Jan. 1 Purchased 90 10%, $1,000 Graham Co. bonds for $90,000 cash plus brokerage fees of $1,200. Interest is payable...
Suppose an individual's utility function over income (M) and leisure (L) is U(M,L)-L, and the individual has non-labor income Y and earns wage w. The total amount of time available is 16 hours. a....
The following on-boarding process for new employees has two stages. In the first, employees fill out several government forms and necessary visas for immigration. In the second the employees attend...
Indicate the single most important factor that motivates a company to select LIFO.
List three situations in which the liquidity position of the firm may be better than that indicated by the liquidity ratios.
1. Midway Printers incurred external costs of $600,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it is expected to provide Midway Printers with a...
Ecology and economics deal with the production and distribution of valuable resources among complex networks of producers and consumers. Energy and material transformations and the fundamental...
Carefully review the following economic concepts and make sure you have a clear understanding of them: Neoclassical economics, absolute scarcity, relative scarcity, natural capital, human-made...
Carefully review the following ecological concepts: ecosystem, primary producers, consumers, decomposers, photosynthesis, nitrogen fixation, ecological succession, biodiversity, ecological...
To view the human economy in isolation from the natural environment is not only misguided but also dangerous. Comment.
Identify the following: (a) The three distinctive contributions of the natural environment to the human economy. (b) The three roles of social institutions in a market economy.
Why is the concept of mobility relevant to social media marketers?
What is your opinion of advertising awards, such as the Cannes Lions, that are based solely on creativity? If you were a marketer looking for an agency, would you take these creative awards into...
What are the contributions of research for each of the roles of destination management?
The Fava Company began operations in 2006 and used the LIFO inventory method for both financial reporting and income taxes. At the beginning of 2007 the anticipated cost trends in the industry had...
The Delta Company uses the completed-contract method of accounting for long-term construction contracts. The company started business in 2005 and prepared the following income statements: The company...
On January 1, 2002, the Klinefelter Company purchased a building for $520,000. The building had an estimated life of 20 years and an estimated residual value of $20,000. The company has been...
You will want to start by looking over the list of requirements for the videos and take some notes on how you will explain and demonstrate each one. Demonstrate dispute resolution techniques....
Two parallel infinite conductive plates are placed at a distance d = 3.0 mm. These two plates carry surface charge densities +4 and -2, respectively, where = 1.1 nC/m2. What is the modulus of the...
Compare and contrast the various references that these artists make to the world beyond the scenes they depict? (city life, continuity with an actual chapel). Why do you think that Campin included...

A relatively low sales to working capital ratio is a tentative indication of an efficient use of

Question:

Step by Step Answer:

No a low salestoworking capital ratio is an indication of an unprofit...View the full answer

Financial Reporting and Analysis Using Financial Accounting Information

Students also viewed these Accounting questions