Purchase Solution

Determination of a Company's Working Capital

Not what you're looking for?

Ask Custom Question

During a board meeting, the CEO of TCB advised you that the lending bank is raising another issue about the audited financial statement presented. This time the loan officer is questioning the low level of the company's working capital. Please write a memo to the loan officer. Explain the various factors that can affect a company's working capital.

Purchase this Solution

Solution Summary

During a board meeting, the CEO of TCB advised you that the lending bank is raising another issue about the audited financial statement presented. This time the loan officer is questioning the low level of the company's working capital. Please write a memo to the loan officer. Explain the various factors that can affect a company's working capital.

Solution Preview

During a board meeting, the CEO of TCB advised you that the lending bank is raising another issue about the audited financial statement presented. This time the loan officer is questioning the low level of the company's working capital. Please write a memo to the loan officer. Explain the various factors that can affect a company's working capital.

Dear Mr. Johnson,

I am writing you this memo to address your concern(s) regarding the current low level of TCB's working capital.
Cash, as you very well know, is the lifeblood of any company. If this lifeblood, more commonly known as working capital, is blocked or restricted in any way, so too is the company's ability to fund its operations, meet its capital requirements, reinvest and/or make payments to its creditors.
Working capital refers to "the cash a business requires for day-to-day operations, or more specifically, cash a business requires for financing the conversion of raw materials into finished goods, which the company sells for ...

Purchase this Solution


Free BrainMass Quizzes
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.