Directions: In a minimum of 2-3 full pages answer the questions provided below.
ID: 2562751 • Letter: D
Question
Directions: In a minimum of 2-3 full pages answer the questions provided below. • Please answer the questions in a double-spaced word document. • Include a title page, your name, instructor, course, date and Learning Plan assignment [Learning Plan 8]. • Remember to cite references. Questions: 1. Explain what an investment banker does. 2. What are the three reasons why a healthcare facility holds cash? 3. Explain what working capital is and why it is needed. 4. List and describe where cash is generated by an organization and where an organization uses its cash.
Explanation / Answer
Answer 1: The investment banker act as an advisor for corporate and government in the capital market. The major duties which are undertaken by an investment banker are as follows:
Answer 2: Reasons for holding cash by a healthcare facility are as follows:
Answer 3:
Working Capital
Current Liabilities
Current Assets
Working Capital
= _
Working capital is a measure of both a company's efficiency and its short-term financial health. Working capital is a part of operating capital. Gross working capital is equal to current assets. Working capital is calculated as current assets minus current liabilities. If current assets are less than current liabilities, an entity has a working capital deficiency.
Importance of Working Capital
Working capital is a common measure of a company's liquidity, efficiency, and overall health. Because it includes cash, inventory, accounts receivable, accounts payable, the portion of debt due within one year, and other short-term accounts, a company's working capital reflects the results of a host of company activities, including inventory management, debt management, revenue collection, and payments to suppliers.
Positive working capital generally indicates that a company is able to pay off its short-term liabilities almost immediately. Negative working capital generally indicates a company is unable to do so. This is why analysts are sensitive to decreases in working capital; they suggest a company is becoming overleveraged, is struggling to maintain or grow sales, is paying bills too quickly, or is collecting receivables too slowly. Increases in working capital, on the other hand, suggest the opposite.
Answer 4 Major sources by which an organization generates cash are as follows:
Uses of cash in Organization: An Organization can use it’s cash in the following areas like:
Current Liabilities
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