In an ideal economy, net working capital is always zero. Why might net working capital be positive
Question:
In an ideal economy, net working capital is always zero. Why might net working capital be positive in a real economy?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (13 reviews)
A longterm growth trend in sales will require some perman...View the full answer
Answered By
BETHUEL RUTTO
Hi! I am a Journalism and Mass Communication graduate; I have written many academic essays, including argumentative essays, research papers, and literary analysis. I have also proofread and written reviews, summaries and analyses on already finished works. I am eager to continue writing!
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
Question Posted:
Students also viewed these Corporate Finance questions
-
Each of the following statements is true. Explain why they are consistent. a. When a company introduces a new product, or expands production of an existing product, investment in net working capital...
-
(Multiple choice) 1) Which of the following is not an advantage of the corporate form of business organization? a. Sell debt or equity in public capital markets b. Owners have limited liability c....
-
A food processing company is considering adopting a new seafood processing system. The system will cost $750,000 plus $23,000 for shipping and installation. It will result in an increase of $5,000 in...
-
The built-up shaft is designed to rotate at 450 rpm. If the radius of the fillet weld connecting the shafts is r = 13.2 mm, and the allowable shear stress for the material is Ï allow = 150 MPa,...
-
On August 1, 2014, Dana Hendley established Advice, a business-consulting firm organized as a proprietorship. The following conversation occurred the following February between Dana and a former...
-
In the study of older students attitudes from Exercise 65, the sample mean SSHA score was 125.7 and the sample standard deviation was 29.8. a. Calculate the standardized test statistic. b. Find and...
-
Go back to Checkpoint 9.3 and answer the same two questions in terms of the directions of the applied forces and the force displacements. Do your answers agree with those you gave in Checkpoint 9.3?...
-
The Fashion Shoe Company operates a chain of womens shoe shops around the country. The shops carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a...
-
The story is rich dad poor dad chapter 3 1) What is rule #1? 2) What is an asset? Give 3 examples. 3) What is the difference between an asset and a liability? 4) According to "Rich Dad", when can a...
-
Offhaus Manufacturing produces office supplies, but outsources the delivery of its products to third party carriers. Offhaus ships to 20 cities from its Dayton, Ohio, manufacturing facility and has...
-
What are the costs of shortages? Describe them.
-
1. Operating and Cash Cycles What impact did this change in payables policy have on BlueSkys operating cycle? Its cash cycle? 2. Operating and Cash Cycles What impact did the announcement have on...
-
Haik transferred his stock in PetroCom, an oil exploration company, to Rowley in exchange for five $10,000 promissory notes. The notes were signed by Rowley and indorsed by Ro w leys son, Stephen....
-
One of the social trends identified in the chapter is the increasing number of people going back to school or retraining for new jobs. Propose a business idea, which isnt a near duplicate of an idea...
-
The stock of Richmond Corp. is owned 60 percent by Sid and 40 percent by Mark, who are unrelated individuals. During 2018, Sid transferred land (basis of $300,000; EMV of $260,000) as a contribution...
-
Reynolds Corp. acquired the assets of Putvan Corp. in a nontaxable merger transaction on December 1, 2019. On the date of acquisition, Putvan had a net operating loss carryover of $500,000. Reynolds...
-
Prior to being acquired, a transferor corporation spins off its unwanted assets to shareholders. It subsequently transfers its remaining assets to the acquiring corporation solely for voting stock of...
-
Merten Corp. is 100% owned by Carmen. Merten owns one asset, a building worth $550,000 with a $90,000 basis. Carmens stock basis is $150,000. A plan of complete liquidation is adopted. What are the...
-
There are 36 inches in a yard and 2.54 centimeters in an inch. (a) Write a function I that converts x yards to inches. (b) Write a function C that converts x inches to centimeters. (c) Express a...
-
The May 2014 revenue and cost information for Houston Outfitters, Inc. follow: Sales Revenue (at standard).............. $ 540,000 Cost of Goods Sold (at standard) ..........341,000 Direct Materials...
-
Analyzing a Portfolio you have $100,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an...
-
Systematic versus Unsystematic Risk Consider the following information about Stocks I and II: The market risk premium is 8 percent, and the risk-free rate is 4 percent. Which stock has the most...
-
SML Suppose you observe the following situation: Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? Beta Expected...
-
This number is the "federal adjusted gross income" according to the line title. What do we call this process of starting our state return with a number from the federal return?
-
What is the main reason for a franchisee to have a contingency fund?
-
Kalan purchased four new tires at Walmart for $1,000 using there "no payments for 12 months plan." About a year later, before Kalan had made any payments, the tires were not performing as well as...
Study smarter with the SolutionInn App