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Homework

Assignment: Working Capital

Using the Internet or Strayer databases, choose two (2) different companies, and research the components of their respective working capital structures.

Write a four to five (4-5) page paper in which you:

1-Analyze the fundamental differences between the working capital structures and components for each chosen company, and speculate upon the main reasons why such differences exist.

2-Based on your analysis above, make at least two (2) recommendations as to how each company could improve its working capital positions. Provide support for your recommendations.

3- Place yourself in the role of a Wall Street Analyst who has to recommend one (1) of the companies as an investment to a company’s clients. Recommend one (1) of the two companies, based solely on that company’s working capital, and support that recommendation.

4- Place yourself in the role of an Investment Banker who has to recommend loaning a substantial amount of capital to one (1) of the chosen companies. Recommend one (1) of the two (2) companies, based solely on that company’s working capital, and support that recommendation.

Use at least four (4) quality references. Note: Wikipedia and other Websites do not quality as academic resources.

The specific course learning outcomes associated with this assignment are:

-Examine the concepts of working capital and the financial analysis of a company’s working capital position.

-Use technology and information resources to research issues in advanced accounting theory.

-Write clearly and concisely about advanced accounting theory using proper writing mechanics.