Differentiate between net working capital and net operating working capital.

Q: Define Working capital and gross capital.

A: Working capital:Working capital is the difference between the company’s current assets and current…

Q: Define capital structure decision

A: The capital structure is an appropriate mixture of a firm's debt and equity used to fund its overall…

Q: What are the different factors affecting the requirements of working capital? Enumerate.

A: Working Capital- It is the fund that is required by a company for managing its day -to-day working…

Q: Distinguish between investment in physical assets and investment in working capital?

A: Fixed capital ventures or investments speak to long term resource obtaining and maintenance.

Q: Define the term the working-capital investment?

A: The working capital is known as the net working capital which is the measure of the company’s…

Q: What is the relationship between planning and working capital management?

A: Finance mangers do the planning of financial activities and resources in the organization by…

Q: is used to pay running costs or operating expenditures. Investment Capital

A: A company's running costs are the amounts of money spent on things like salaries, heating, lighting,…

Q: How does the "Net Operating Working Capital"  differ  from    "Net Working Capital "? (write only…

A: Net Operating Working Capital: It is the difference between the total long period assets and total…

Q: Explain the graph in the context of working capital management.

A: Working Capital Management is a business strategy in which businesses design their strategies to…

Q: Define capital requirement ratio (CR)

A: Answer: Capital requirements are nothing but regulatory guidelines for banks that specify the amount…

Q: What is working capital

A: The current assets are the assets that can be converted into cash within one year. Current…

Q: oncept of capital maintenan -defines the level of profitabil

A: Capital maintenance: It is an accounting principle that says that a business should recognize its…

Q: Define target capital structure

A: Target capital structure is a proportion of equity, debt, or preferred stock in such a manner that…

Q: How are planning and working capital management related

A: Planning and working capital management related will be explained:

Q: discuss FASB standard in working capital

A: The Financial Accounting Standards Board (FASB) is a private standard-setting body whose primary…

Q: for the ratio return on capital employed which of the following best describes capital employed

A: This question explains about the ratio return on capital employed.

Q: Distinguish between the following measures of invested capital, and briefly explain when each should…

A:

Q: How is the weight in the weighted average cost of capital calculated

A: WACC = (Weight of Common stock * Cost of common stock) + (Weight of preferred stock * Cost of…

Q: Describe the process of making Capital-Expenditure Decisions?

A: Capital Expenditure Decisions include those decisions which require deciding on the purchase of…

Q: Identify and discuss the two components of contributed capital

A: Contributed capital Contributed Capital is the price that the share holders have given to the…

Q: What is permanent net operating working capital?

A: Permanent net operating work capital is also referred to as fixed work capital. Continuous work…

Q: Calculate the Working Capital

A: Working Capital = Current Assets - Current Liabilities So, we have given with,  Total Assets =…

Q: What is net operating working capital (NOWC)?

A: Working Capital The working capital (wc) is a financial term that represents the operating liquidity…

Q: Differentiate between working capital and net working capital.

A: Working Capital is also referred to as simply the current asset of a firm. This current asset is…

Q: what is meant by Working Capital and, the meanings of Receivables, Inventory and Payables?

A: Meaning of Working Capital  Working capital, also referred as net working capital (NWC), is the…

Q: Net working capital formula?

A: Net working capital is the difference between the current assets and current liabilities. It is the…

Q: Define capital gains yield

A: Capital gain yield in finance is an important concept because it helps the investors to know the…

Q: Define the term Working Capital?

A:

Q: Define Working capital turnover

A: Working capital represents the liquidity of a company as it shows the difference between the current…

Q: how to find net operating working capital

A: Working capital or net working capital is arrived by deducting Current liabilities from Current…

Q: How did the term working capital originate?

A: Introduction: Working capital can be defined as the necessary financial resources needed by a firm…

Q: When should the investment in working capital be treated as capital expenditure?

A: Working capital:   It is the form of capital used by the business for day-to-day operations. Working…

Q: How to calculate working capital, current assests, current liabilities, quick assets, quick ratio…

A:

Q: Borrowing cost can be capitalized as cost of the assets when

A: Borrowing costs are costs related to amount borrowed or loans taken. This is the interest expense…

Q: Discuss IFRS standards on working capital

A: Working Capital: Working capital is defined as the difference between an entity's current assets and…

Q: Define paid-in capital

A: Definition: Stockholders’ equity: Stockholders’ equity is referred to as the claims of the…

Q: Define capital structure

A: Capital Structure is very much important for a company as it helps them to increase the market value…

Q: What is net working capital?

A: Net working capital: Net working capital is also known as the working capital. To compute the net…

Q: Define each of the following terms:a. Working capital; net working capital; net operating working…

A: a) Working capital: Working capital refers to the excess amount of current assets over its current…

Q: Explain how to classify working capital according to its “components” and according to “time”…

A: Working capital can be categorized on basis of Concept (gross working capital and net working…

Q: Define Working capital.

A: Working capital: Working capital refers to the excess amount of current assets over its current…

Q: Methods of controlling various elements of working capital are

A: Effective working capital management optimizes the operating cycle , minimize the cost of working…

Q: how to compute the percentage change in working capital?

A: Working capital is the capital which is used to operate the day to day business operations like,…

Q: Compare gross working capital and net working capital.

A: Introduction: Working capital can be defined as the capital that represents the operating liquidity…

Q: Why is the management of working capital important?

A: Working capital can be defined as that portion of capital invested by a businessman to fulfill his…

Q: Explain in words the difference between net working capital and net operatingworking capital.

A: The working capital is the portion of total capital that is required in a business to meet the…

Q: . Determine the cost of each capital structure component. • Calculate the weighted average cost of…

A: WACC: It is the weighted average cost of capital of the firm for raising capital from different…