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Gelneren [198K]
2 years ago
13

Jarrett Baker is the founder of an enterprise software company located in Chevy Chase, Maryland. By looking at the income statem

ents for Jarrett’s business over the past 3 years, you see that its working capital has declined from $42,400 in 2012 to $17,900 in 2013 to $3,100 in 2014. If this trend continues, in what ways could it jeopardize the future of Jarrett’s business?
Business
1 answer:
Westkost [7]2 years ago
3 0

Answer and Explanation:

In this particular case, the working capital continues to fall and hits a value below zero otherwise the business would have a negative cash flow.

Company's assets are below its liabilities which including its current working capital would not be able to manage its debts. The Company would be faced with extreme difficulty in paying back its creditors.

If, as in the case at hand , the company continues to operate in low working capital and work capital declines over time, the company can encounter extremely serious financial problems.

Following Effects may include declining revenue from purchases, non-inventory management, or issues with the specific total accounts receivable.

You might be interested in
Why do companies lower product prices and offer free samples?
Lemur [1.5K]
The best choice here is A) They give out the samples and free trials as a test to see how common it is for people to be interested in their product.
Hope this helps
3 0
1 year ago
Read 2 more answers
Demand for a product is​ 12,000 units per year. Every time an order is​ made, the company must pay​ $15.00 per order. The cost t
KATRIN_1 [288]

Answer:

Total cost is $24060

Explanation:

Total demand per year = 12000 units

Size of one order = 3000 units

Total number of orders = 12000 / 3000 = 4

Per order cost = $15

Per unit cost = $2

Below is the calculation to find the total cost.

Total cost = Number of orders × Per order cost + Total demand per year × Per unit cost

Now insert the values.

Total cost = 4 ×15 + 12000 × 2

Total cost = $24060

5 0
2 years ago
The most desirable bundle of rights in time-sharing gives the buyer privileges to rent or sell the interest in the property. the
Arturiano [62]

The most desirable bundle of rights in time-sharing gives the buyer privileges to rent or sell the interest in the property. These rights are known as Livery of Seisin. Livery of Seisin refers to owning something and having the right to sell it. When a consumer owns a time-share, they have the rights to rent or sell the property during their allotted time during the year they have the property.

6 0
2 years ago
Read 2 more answers
If the quote for a Treasury bond is listed in the newspaper as 98.2812 bid, 98.4062 ask, the actual price at which you can purch
azamat

<u>Solution and explanation:</u>

<u>Given data: </u>

Ask price: 98.4062, bid price: 98.2812, par value of the bond: $10,000

<u>The following formula is used in order to calculate the actual value of the bond </u>

The ask price will be used while calculating the actual value of the bond and the par value of the bond will be used

Ask price will be multiplied with par value of the bond and divided by 100

98.4062(10000) / 100= $9840.62

Therefore, the par value as per the above calculation is $9840.62

3 0
2 years ago
Read 2 more answers
Thad works for a small company as its marketing director. The company is creating a new product to introduce to the market for s
RideAnS [48]

The correct answer is; The place or distribution of the paint .

Further Explanation:

There are a total of four things that make up the marketing mix. They are known as the 4P's in business and they are very important for the businesses to follow. The four marketing mixes are;

  1. Price
  2. Product
  3. Promotion
  4. Place

Since Thad has already spoken to the customers and has gotten their feedback he will not need the promotion. He has the customers input on colors, names, and expectations. He has also decided on a price, so he doesn't need to focus on that point anymore. However, <em>he has not determined the place or the distribution of his paint. He will need to focus on the place he will sell his paint. </em>

Learn more about marketing mix at brainly.com/question/859394

#LearnwithBrainly

4 0
1 year ago
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