The net working capital is positive in real economy. As in ideal economy the net working capital is zero. Net working capital: The total amount of current assets and the current liability of the company is net working capital. The company can use working capital to fulfill the short term needs of the company. The company has high net working capital and it is considered as the growing company.

Question

Want to see the full answer?

Answer 1

Question

Chapter 26, Problem 7CQ

Summary Introduction

To explain: The net working capital is positive in real economy. As in ideal economy the net working capital is zero.

Net working capital:

The total amount of current assets and the current liability of the company is net working capital. The company can use working capital to fulfill the short term needs of the company. The company has high net working capital and it is considered as the growing company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Describe the significance of working capital management in your own words. What are the advantages and disadvantages of keeping a high level of working capital?

economic value added. EVA will be positive whenever ROC is positive and greater than the cost of capital. Explain why this is so

What does it mean to have negative working capital?

Answer 2

Question

Chapter 26, Problem 7CQ

Summary Introduction

To explain: The net working capital is positive in real economy. As in ideal economy the net working capital is zero.

Net working capital:

The total amount of current assets and the current liability of the company is net working capital. The company can use working capital to fulfill the short term needs of the company. The company has high net working capital and it is considered as the growing company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 26, Problem 7CQ

Summary Introduction

To explain: The net working capital is positive in real economy. As in ideal economy the net working capital is zero.

Net working capital:

The total amount of current assets and the current liability of the company is net working capital. The company can use working capital to fulfill the short term needs of the company. The company has high net working capital and it is considered as the growing company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 26, Problem 7CQ

Summary Introduction

To explain: The net working capital is positive in real economy. As in ideal economy the net working capital is zero.

Net working capital:

The total amount of current assets and the current liability of the company is net working capital. The company can use working capital to fulfill the short term needs of the company. The company has high net working capital and it is considered as the growing company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 26, Problem 7CQ

Summary Introduction

To explain: The net working capital is positive in real economy. As in ideal economy the net working capital is zero.

Net working capital:

The total amount of current assets and the current liability of the company is net working capital. The company can use working capital to fulfill the short term needs of the company. The company has high net working capital and it is considered as the growing company.

Answer 6

Chapter 26, Problem 7CQ

Summary Introduction

To explain: The net working capital is positive in real economy. As in ideal economy the net working capital is zero.

Net working capital:

The total amount of current assets and the current liability of the company is net working capital. The company can use working capital to fulfill the short term needs of the company. The company has high net working capital and it is considered as the growing company.

Answer 7

Chapter 26, Problem 7CQ

Summary Introduction

To explain: The net working capital is positive in real economy. As in ideal economy the net working capital is zero.

Net working capital:

The total amount of current assets and the current liability of the company is net working capital. The company can use working capital to fulfill the short term needs of the company. The company has high net working capital and it is considered as the growing company.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 26 - Prob. 1CQ Ch. 26 - Prob. 2CQ Ch. 26 - Prob. 3CQ Ch. 26 - Cost of Current Assets Grohl Manufacturing, Inc.,...Ch. 26 - Prob. 5CQ Ch. 26 - Shortage Costs What are the costs of shortages?...Ch. 26 - Prob. 7CQ Ch. 26 - Prob. 8CQ Ch. 26 - Prob. 9CQ Ch. 26 - Prob. 10CQ

Solution Summary: The author explains that the net working capital is positive in real economy, while in ideal economy it is zero.

Concept explainers

Videos

Want to see the full answer?

Chapter 26 Solutions