Estimate working capital requirements, Financial Management

Assignment Help:

Q. Describes Working Capital. Briefly describe the techniques utilized in making working capital forecast or Estimating Working Capital Requirements?

Ans:- Meaning of Working Capital: - Working capital management is an important aspect of financial management. In business, money is required for fixed assets and working capital. Fixed assets comprise plant and machinery, land and building, furniture and fittings etc. Fixed assets are obtained to be retained in the business for a long period and yield returns over the life of such assets. The major objective of working capital management is to determine the optimum amount of working capital required. Usually management of working capital means management of current assets.


Related Discussions:- Estimate working capital requirements

Examine the pay-back period , Critically examine the pay-back period as a t...

Critically examine the pay-back period as a technique of approval of projects.

Analyse interest rate swap and currency swap, Problem: (a) Critically ...

Problem: (a) Critically analyse interest rate swap and currency swap. (b) Explain why a bank may face credit risk when it enters into offsetting swap contracts. (c) Two

What are the primary reasons that companies hold cash, What are the primary...

What are the primary reasons that companies hold cash? Companies hold cash to do necessary payments to take advantage of opportunities as they arise and to cover unforeseen eme

Mergers and acquisitions, Mergers and Acquisitions It is a Process of b...

Mergers and Acquisitions It is a Process of business combination. There are 3 forms of business combination: 1. M1.    M1 has the highest liquidity. This is the narrowest t

Explain the risk–return relationship, Explain the risk–return relationship ...

Explain the risk–return relationship The relationship among the risk and required rate of return is termed as the risk–return relationship.  It is a positive relationship since t

Show the accountable plan, Q. Show the Accountable Plan? Accountable P...

Q. Show the Accountable Plan? Accountable Plan - An accountable plan is any reimbursement or other expense allowancearrangement of an employer which meets all of the subseque

risk/return profile of the convertible security, Let us consider thr...

Let us consider three scenarios of changes in stock prices and look into the risk return profile of the convertible security. Let us assume that the stock prices

Visible venture capital, It is the organized and established firms that con...

It is the organized and established firms that constitute the venture capital industry.

Long-term debt finance, The approaches that Blin could accept regarding the...

The approaches that Blin could accept regarding the relative proportions of long- and short-term finance to meet its working capital needs have been described as moderate, conserva

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd