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Assignment Paper

Decent Essays

Fill in the following information. Then save this file and upload it to Blackboard by the designated deadline. Section 1 pertains to your analysis of the list of articles provided by Dr. Baran for the full class. These can be found in the instruction file on Blackboard for this assignment. Section 2 instructs you to find your own news article relevant to any of the chapters covered to analyze.

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Article Title: Finance Chiefs Look to Free Up Working Capital Ahead of Rate Increases

Article URL: https://www.wsj.com/articles/finance-chiefs-look-to-free-up-working-capital-ahead-of-rate-increases-1503313201

Article summary: The main point of this article is …show more content…

Capital structure long term is looking at how assets for the business should be paid for. Through the article the common theme is to more efficiently change working capital into cash that can be used to pay for the debt and liabilities for the business. By converting the working capital into cash, the business can make payments without having to take out an extra loan or take on more debt for the business. The working capital management is evaluating the day-to-day finances of the firm and how to make sure it is paid for. Again converting working capital into tangible resources that can be used to pay for the firm is key to covering the businesses operating expenses day to day in this economy. It is more profitable for the company to do this. This will not change the overall total value of assets, but it would shift assets from being fixed into being current. Having more current assets creates a larger net working capital for the business, which is beneficial to them. Determinants of the businesses growth include total asset turnover and the dividend policy. The total asset turnover will be increased if the tips in this article are complied with. This is because having current assets that can and will be used increases this amount. The dividend policy is about choosing how much to pay shareholders versus reinvesting

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