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    Working with Capital - Importance to Genesis Energy

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    •Explain the concept of working capital and its importance to Genesis Energy.
    •Describe the mechanism and methodology used to ensure that operational needs are met through short-term financing. Explain why this methodology is important to Genesis Energy.
    •Explain how working capital represents the assets that are needed to carry out the day-to-day operation and how working capital can act as a source of financing or increase the need for financing

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    https://brainmass.com/business/capital-structure-and-firm-value/working-capital-importance-genesis-energy-607294

    Solution Preview

    The response addresses the query in 756 words with APA references

    //Working capital concept is important for business activities because of providing finance for the day to day operational activities. In the next paragraphs, we will explore the concept of the working capital for day to day operational activities. There will also be a description regarding the importance of working capital to Genesis Energy.//
    Working capital shows investment in the current assets to operate the day to day operational activities of a company. It is measured in two forms: one is in the gross working capital that shows the total current assets and other is net working capital that shows the difference between the current assets and the current liabilities. Working capital is essential for the proper functioning of the business activities because the working capital fund is not blocked in different forms like debtors, inventory, prepaid expenses, etc. that are main elements of a business. Therefore, the working capital is an important concept for the business activities in order to manage the day to day working of a company (Baker & Powell, 2009).
    The working capital is very important for Genesis Energy as it blocks a lot of funds that further costs ...

    Solution Summary

    The concepts of working capital and its importance to Genesis Energy are determined. The response addresses the query in 756 words with APA references.

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