How to calculate working capital, current assests, current liabilities, quick assets, quick ratio and current ratio.

Q: Define Working capital and gross capital.

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

Q: Is a drawing account capital?

A: Drawings: It refers to the withdrawals made by the owner from the business including cash, goods,…

Q: Calculate the following ratios: return on equity, return on assets (levered), return on sales…

A: Ratio analysis helps business to know the financial position of it using the interpretation of the…

Q: how do I calculate the quick ratio in a balance sheet?

A: Quick ratio is a liquidity ratio which is used to analyse the ability of a company to pay their…

Q: Working Capital is a measure used to assess the liquidity of the company, computed as current assets…

A: The Answer is false Refer step2 for explanation

Q: What will be the accumulated amount in an investment account

A: As per the concept of the Time value of money, today’s money value has more valuable than tomorrow.…

Q: The cost of capital includes the cost of equity, the cost of long-term debt and the cost of accounts…

A: The capital of a corporation is the amount of money or funds that a corporation uses for operating…

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: 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: How are planning and working capital management related

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

Q: What is the impact of working capital on the cash flow statement?

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Calculate and analyze the financial ratio from Liquidity, Profitability, Activity, Solvency and…

A: Financial ratio is an arithmetic expression used to describe the significant relationship between…

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: Explain briefly what working capital and working capital management are and what they do. Explain…

A: The financial Ratios will be calculated by taking the numerical values that are taken from the…

Q: 1. The formula being used to get the working capital is - a. Working Capital= Current Assets/Current…

A: Solution 1:- As per Bartleby honor code, if multiple questions are posted, the expert is required…

Q: When is debt to asset ratio important when raising money

A: Debt to asset ratio is one of the important ratios that we use in finance. This is essentially a…

Q: Differentiate between Current Account vs Capital Account.

A: Account: A record, that documents or records the changes in assets, liabilities, or equity for a…

Q: Define capital intensity ratio

A: Formula to compute capital intensity ratio:

Q: Computing liquidity, working captial and current ratio. Computing measures of profitability, profit…

A: Liquidity ratios emphasizes on the company’s ability to fulfill the current obligations out of the…

Q: (a) Determine the cost of equity

A: Cost of equity in the given problem can be computed using capital asset pricing model.

Q: How much is the total expense? How much is the net income? What is the balance of the ending…

A: Accounting equation of the business says that total assets must be equal to total liabilities and…

Q: Current assets - current liabilities = [A] fixed capital [B] working capital [C] opening capital…

A: Working capital = Current assets - current liabilities Where, Current assets includes: Accounts…

Q: Calculate the Working Capital

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

Q: Define the terms paid-in capital and retained earnings.

A: Paid in capital: Paid in capital represents the total amount invested by the shareholders of the…

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: Calculate the weighted average cost of capital.

A: Weighted average cost of capital = (Cost of equity * weight of equity) + (Cost of debt * Weight of…

Q: The weights used in calculating the weighted average cost of capital should be based on ___

A: The Answer:

Q: he capital maintenance concept followed under present GAAP is Economic capital Physical capital…

A: SOLUTION- CAPITAL MAINTENANCE CONCEPT ALSO KNOWN AS CAPITAL RECOVERY IS AN ACCOUNTING CONCEPT BASED…

Q: what is the return asset that is used in financial statement analysis?

A: Here in this case we need to understand the meaning of return on asset ratio of financial statement…

Q: Does weighted average cost of capital is similar to Cost of Capital?

A: Cost of capital refers to the return expected by the company for making investments in projects or…

Q: Working Capital Management is concerned with management of Select one: a. Long term capital b.…

A: Working capital management helps to ensure smooth operations of the business.

Q: how to find net operating working capital

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

Q: Explain Capital Accounts?

A: Capital :                 Generally refers to the amount invested in an enterprise by its owners eg…

Q: Explain the difference between capital assets, capital investments, and capital budgeting.

A:

Q: a. What is Liquidity Ratio? b. What is Asset Management Ratio

A: Solution of both the concepts are given below

Q: what the meaning of current assets ratio?

A: Assets are the rights and resources being held by the business. Assets that are either in cash or…

Q: Describe how the following factors affect external capitalrequirements: (1) payout ratio, (2)…

A: The funds which are raised externally i.e from outside sources is called external financing. The…

Q: Working capital is the difference between your total assets and total liabilities. * Right Wrong

A: Working capital is the difference between companies current asset and current liability, it is the…

Q: Define the terms working capital, current ratio, and acid-test ratio (or quick ratio).

A: Answer: Working capital: The working capital is excess of current assets over current liabilities.…

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 Net Profit Margin, Return on Equity, Asset Turnover?

A: Here in this question we are require to understand the meaning of net profit margin, return on…

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: 1- If the classic balance sheet formula were written as follows, what would be the net working…

A: Firm require funds for long term (fixed assets) and daily operations. Net working capital (NWC)…

Q: Define the term, the return on invested capital (RIC)?

A: All investments are made keeping focus on the expected returns that can be generated from it. The…

Q: Differentiate between net working capital and net operating working capital.

A: net working capital: Net working capital is different from operating working capital.  it focus on…