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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Week 4 Discussion 1_...
School employees have the right to date accordingly to their sexuality preferences without being discriminated against which causes one to be in fear of jeopardizing their employment. A person’s sexu...

Week 4 Discussion 1
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School employees have the right to date accordingl

Exam 2_Christian Spi...
As much as the belief exists that the Old Testament and the Hebrew scriptures have a lot of similarities, there are different versions as well, used by anyone who wishes to know more about them and wh...

Exam 2_Christian Spiritual Vision (1)
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As much as the belief exists that the Old Testamen

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Social Media has a major impact on today's opinions and even decision making. From recreational purposes to business purposes, social media platforms are used by many, from high school students to sci...

Module 6 Discussion
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Social Media has a major impact on today's opinion

5-1 activity Working capital management

5-1 Activity

Q Working capital management is critical to an organization’s ability to meet its short-term obligations. When proposing new projects or investment ideas for corporations, it is critical to consider working capital red flags such as excess credit use by the business or a low cash balance. Managing such issues early on can help corporations acquire a competitive advantage in the marketplace.

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Working capital is stated as the difference between the current asset and the current liability of the given firm. A current asset is equal to cash, accounts receivables, inventory and marketable securities, and other assets that can be turned into cash in less than a year and current liabilities include accounts payables, short term debts, wages, taxes, the current amount of the long term debt and other items due within a year. Working capital measures the liquidity of the given firm, operational efficiency, and short-term financial health of the company (Boisjoly, Conine & McDonald, 2020). If the company’s current asset is lower than that of the current liability, then the calculated working capital is negative and the firm has liquidity issues. Thus it is not a good idea to invest in that firm, which is suffering from liquidity crisis and operational inefficiencies. On the other hand when the current asset of the firm is greater than a current liability, working capital is positive and it shows a positive impact for the investors to invest in the firm.