Working Capital Case Study

be described. Jurisdictional requirements for this case as well as the reasons why it was heard at

Citation: New Jersey v. T. L. O. 469 U.S. 325 105 S. Ct. 733; 83 L. Ed. 2d 720; 1985 U. S. LEXIS 41; 53 U.S.L.W. 4083.

Although the company seems to be profitable, it has faced shortage of cash. It happened due to increase in Accounts Receivable as well as Inventories. On the other hand, Accounts Payable does not increase that rapidly and difficulties regarding cash collection become evident. Furthermore, the cash collection cycle becomes larger (59 days in year 2003, while more than 70 in year 2006).

Review the cases below by going to the “Detailed Contents” section of the Contemporary Criminal Law textbook. After reviewing the case, select the defense that was represented in the case from the following list:

As shown in the ratios chart, working capital has increased by $13M. Maturities of short-term investments and cash flow from operations are projected to be sufficient to sustain the company’s overall financing needs, including capital expenditures. The following corporate strategic plan identifies a project that needs financial backing.

3. Briefly state the facts of this case, using the information found in the case in

Working capital is the key to a successful business. It is like their blood flow and the manager’s job is to help keep it flowing. Under the Generally Accepted Accounting Principles working capital is simply the difference between a company’s Current Assets, which are cash, inventory, accounts receivable and prepaid items, and Current Liabilities, accounts payable and accrued expenses.

Similarly, the working capital ratio is a metric that is utilized for the purpose of appraising the liquidity position of a commercial entity (Robinson). A review of the working capital of the two companies confirms that they had a positive working capital in 2014, but a negative one in 2015 (Yahoo.com). The outcome suggests that the liquidity position of the organization has deteriorated. Thus, the two commercial entities are likely to experience challenges with respect to meeting short-term obligations.

SNC wants to build off the momentum gained in phase 2 by further expanding their brand to reach the international markets. Mega –Mart has helped SNC become a national household name, so we would like to become an international competitor. Applying a global strategy will increase our revenue and our EBIT and allow us to keep our costs flat by contracting with international suppliers. At this stage in our business cycle, we are interested in maintaining steady growth, retaining as much of our earnings as possible and paying down our credit lines to lower our interest expense.

For partners of ASOS, they generally go through the same production process as ASOS own-branded dress. However, they receive the order from ASOS and its merchandisers instead of consumers. It is an important process for ASOS as understanding the product lifecycle and stock level, they can plan the introduction and withdrawal of product. Also price can be adjusted accordingly with which sales are introduced during the decline period (The Times 100, NA). However, this supply chain requires a high collaboration of functions across supply chain (Fernie, 2009). The reason why ASOS can eliminate the traditional functions of a retail store is due to its well-managed supply chain, effective stock keeping system and fast-going logistic system (Meadows, 2007).

We decided to tighten accounts receivable and drop poorly selling products because they yielded a percentage decrease in working capital requirement larger than their percentage drop in sales. Also these 2 options fit

The main problem of the company is that it couldn’t liquidate a seasonal working capital loan for the requisite 30 days each year. It reflects the company doesn’t have sufficient cash and they need more loan but the bank is reluctant to give any unless the company can give a reliable financial plan to show they can pay off their loan by the end of 2012. So, Mr Malik came up with a financial forecast for the month to month operation to gain the bank’s trust. Sadly, the forecast portrays it cannot afford to pay off its debt by end of 2012 and would owe a balance of IND 3,858.00. This

In this paper I’ll analyze the fundamental differences between the working capital structures and components for Google and Oracle, and speculate upon the main reasons why such differences exist; how each company could improve its working capital positions. As a Wall Street Analyst who has to recommend one of the companies as an investment to a company’s clients; based solely on that company’s working capital; as an Investment Banker who has to recommend loaning a substantial amount of capital to one company based solely on that company’s working capital.

BBC Pvt. Ltd, is a chemical manufacturing company that was established in 2004. It's registered offices are in Bangalore, and its manufacturing is in Lucknow. At the time of the case BBC is in need of working capital to secure a major contract with Indian Railways. The contract would open doors for long term business. BBC's product manufacturing required minimal fixed assets investment and high quality production. Their product was low cost high quality which

From the 2001 projections, the company`s sales revenues reached the 90.9 million mark in 2001 representing a 15 million rupees growth over the previous year. Despite this remarkable increase, there are a number of financial challenges that must be taken into account when evaluating the forecast. For example, based on the company`s total assets turnover which tells how efficient the company is using its assets to generate sales, Kota`s total assets turnover ratio is suboptimal. In 2000, the