How do you determine the right amount of working capital a business should have?

Expert Solution

jeff jeffy answered 2 years ago

What is working capital and how do businesses use working capital to manage a business?

Define working capital? How is it measured? Calculate the amount of working capital for Snider Corporation...

Define working capital? How is it measured? Calculate the amount of working capital for Snider Corporation SNIDER CORPORATION Balance Sheet December 31, 2010 Assets Current assets: Cash.............................................................................. $ 50,000 Marketable securities.................................................... 20,000 Accounts receivable (net)............................................. 160,000 Inventory...................................................................... 200,000 Total current assets....................................................... $430,000 Investments................................................................... 60,000 Plant and equipment..................................................... 600,000 Less: Accumulated depreciation.................................. (190,000) Net plant and equipment.............................................. 410,000 Total assets................................................................... $900,000 Liabilities and Stockholders’ Equity Current liabilities Account payable........................................................... $90,000 Notes payable............................................................... 70,000 Accrued taxes............................................................... 10,000 Total current liabilities................................................. 170,000 Long-term liabilities: Bonds payable................................................................. 150,000 Total liabilities.............................................................. $320,000 Stockholders’ equity Preferred stock, $50 per value...................................... 100,000 Common stock, $1...

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What is the amount of working capital

Harding Company Particulars Amount$ Accounts payable 40,000 Accounts Receivable 65,000 Cash 30,000 Accrued Liabilities ...

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