Question: Why is it that some working capital accounts may not vary proportionately with sales?

Why is it that some working capital accounts may not vary proportionately with sales?

Step by Step Solution

★★★★★

3.33 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Working capital takes into account current assets and current li... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

141-B-C-F-F-P-M (342).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Q:

Why is it that some exporters would support voluntary export restraints agreed to by their government?

Q:

Why is it that some economists are suspicious that some of those who claim they are for "free trade but fair trade" are not really championing the cause of free trade?

Q:

Why is it that a company can grow too fast? If Wise Acre Frozen Treats significantly increased its sales, why wouldnt its increased income provide more than enough cash to even out its cash flow?

Q:

1 BUS333 - Week 5 2 Chapter 3 (Working with Financial Statements); Chapter 4 (Long-Term Financial Planning) 3 37 38 For questions \#7-20, refer to the following financial information for Apple Inc....

Q:

23)This company is currently operating at 82% of capacity. The profit margin and the dividend payout ratio are constant. Net working capital and fixed assets vary directly with sales. Sales are...

Q:

Using the operating Assumptions below, titled operating Assumptions the green boxes in the following 4 questions , which are also labeled, Q1, Q2, Q3, Q4.(The Balance Sheet and Income Sheet, is just...

Q:

Using the Assumptions below, and the Balance Sheet and Income Statement solve Q1, Q3, Q4. Please show formulas too! The directions for each question are at the top of each question. See pictures...

Q:

Using the operating Assumptions, which is the 3rd picture, titled operating Assumptions answer the green. boxes in the 4 questions, which are also labeled, Q1, Q2, Q3, Q4.(The Balance Sheet and...

Q:

Please show calculation using excel formula A B D E F G H I J K Operating Assumptions: Sales will grow at 7% per year in the next 5 years. Cost of sales will be 67% of total sales in the next 5...

Q:

Please show formula! Operating Assumptions: Sales will grow at 7% per year in the next 5 years. Cost of sales will be 67% of total sales in the next 5 years. SG&A will be 17% of total sales in the...

Q:

Refer to either a current intermediate accounting text or a guide to current generally accepted accounting principles. Give at least one example for each of the four cells of Exhibit 9-1 (your...

Q:

Explain or illustrate how the following items should be reported in an Enterprise Funds statement of revenues, expenses, and changes in fund net position: 1. Depreciation on capital grantfinanced...

Q:

E x 5 . Let F = ( : x , y , z : ) . I s the upward flux greater across the upper hemisphere x 2 + y 2 + z 2 = 1 o r the paraboloid z = 1 - x 2 - y 2 ?

Q:

On September 1st, Year 1, Dexter's Drive-In issues a bond with a $80,000 face value and a 12% stated interest rate. The bond will pay every four months for two years, ending on September 1st, Year 3....

Q:

Tamara Quist is a 36-year-old Canadian citizen, and the only daughter of Bob and Linda Quist. Tamara is the president and sole owner of all 100 common shares of Quist Tires (QT), a successful...

Q:

Using the Bayesian network below label, the following statements about conditional independence as true or false. For this question, you should consider only the structure of the Bayesian network,...

Q:

Peter Johnson, the CFO of Homer Industries, Inc. is trying to determine the Weighted Cost of Capital (WACC) based on two different capital structures under consideration to fund a new project. Assume...

Q:

This is a Collaborative Learning Community (CLC) assignment. For this assignment, you will use the "Analytics Problem Statement" template to organize your problem statement. This will help you...

Q:

How much time would the new layout save?

Q:

You own a portfolio that has $2,950 invested in Stock A and $3,700 invested in Stock B. If the expected returns on these stocks are 8 percent and 11 percent, respectively, what is the expected return...

Q:

You own a portfolio that is 35 percent invested in Stock X, 20 percent in Stock Y, and 45 percent in Stock Z. The expected returns on these three stocks are 9 percent, 17 percent, and 13 percent,...

Q:

Based on the following information, calculate the expected return: State of Economy State of Ecny Probability of Portfolio Return If State Occurs .30 .14 .22 Boom 70

Q:

can someone help with the following information review problem thank you i do not own the orignall rights to the followong information Ilas Company is considering a capital investment of $190,000 in...

Q:

A new building has just opened on campus Unfortunately, the administration has forgotten to budget for replacement light bulbs. The liletime of a bulb has an exponential distribution with a mean of...

Q:

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable...