Working Capital Read the journal article, “Businesses Seeking Working Capital-Survey(Links to an external site.).” Based on the information presented in the article, discuss the following: How should...

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Working Capital

Read the journal article, “Businesses Seeking Working Capital-Survey(Links to an external site.).” Based on the information presented in the article, discuss the following:



  • How should a business use working capital analysis?

  • Which is more important to the short-term lender: the stock of cash or the flow of cash?

  • Is it possible in today's business to operate with no current liabilities?



Answered Same DayJul 15, 2021

Answer To: Working Capital Read the journal article, “Businesses Seeking Working Capital-Survey(Links to an...

Soumi answered on Jul 16 2021
158 Votes
Running Head: CORPORATE FINANCE        1
CORPORATE FINANCE        4
CORPORATE FINANCE
Table of Contents
Ways
of using Working Capital Analysis by a Business    3
Most Important Thing for Short-Term Lender    3
Possibilities of Present Business Operating with No Current Liabilities    3
References    4
Ways of using Working Capital Analysis by a Business
Working capital analysis is mainly used to determine the requirement of working capital for short term. As note by Aktas, Croci and Petmezas (2015), A business should use working capital analysis to identify the capital required for each individual component. This will enable the firm in identifying the areas that are blocking unnecessary liquidity. It can also be used to...
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