Of what importance are good management practices as they relate to working capital?

What will be an ideal response?

Answer: The stock of net working capital is the amount of inventory, cash, and accounts receivable minus accounts payable that the firm must have on hand to run its business. If the business can be run with a lower net working capital, this amount of assets could be given to investors. Conversely, increases in net working capital use after-tax profits that the firm could otherwise use to finance capital expenditures or pay to investors. As such, changes in net working capital are investments that the firm makes in its future profitability.

Business

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An opportunity cost is a relevant incremental cost for capital budgeting decisions

Indicate whether the statement is true or false

Business

The amount of time between successive TV watching by first graders follows an exponential distribution with a mean of 10 hours. The probability that a given first grader spends more than 5 hours between successive TV watching is ______

Fill in the blank(s) with correct word

Business